COLOMBO, Nov 16 (Reuters) -The Sri Lankan rupee closed steady on Friday, hovering near its all-time low hit in the previous session, as political uncertainty outweighed the positive impact of a policy rate hike, sources said.
Stocks closed weaker due to political uncertainty and the policy rate hike.
The parliament descended into chaos for a second day as lawmakers supporting newly appointed Prime Minister Mahinda Rajapaksa threw books, chili paste and water bottles at the Speaker to try to disrupt a second no-confidence motion. The vote went ahead anyway and for a second time lawmakers turned against Rajapaksa and his new government. It was not immediately clear if President Maithripala Sirisena will accept the vote and appoint a new government.
The central bank on Wednesday unexpectedly raised its key policy rates, in a move aimed at defending a faltering rupee as foreign capital outflows pick up amid an escalating political crisis and rising U.S. interest rates.
The rupee hit a fresh low of 176.80 per U.S. dollar on Thursday.