October 23, 2013 / 6:20 AM / 4 years ago

Sri Lanka rupee at over 3-month high on dollar inflows; stocks up

COLOMBO, Oct 23 (Reuters) - The Sri Lankan rupee was trading at a more than three-month high on Wednesday, largely due to foreign buying in top conglomerate John Keells Holdings Plc and inflows into government bonds, dealers said.

The spot rupee was quoted at 130.70/80 per dollar at 0513 GMT, its highest since July 16 and firmer from Tuesday’s close of 130.80/90.

“The rupee is firmer on stock-related inflows, specially foreign buying on John Keells rights,” a currency dealer said.

Dealers said foreign buying in John Keells for a third day helped boost the currency. Keells is raising $299 million by selling rights and warrants to fund an $850 million resort project. The deadline to raise the money is Friday.

They also cited some inflows into government bonds as helping the rupee.

Some dealers expect the currency to come under downward pressure after the central bank cut key policy interest rates to multi-year lows last week.

Central bank Governor Ajith Nivard Cabraal said the decision was taken after considering the stability in the exchange rate and a favourable inflation outlook in the near term.

The rupee hit a record low of 135.20 on Aug. 28, but has managed to stem further losses since then.

Sri Lanka’s main stock index rose 0.01 percent, or 0.78 points to 5,926.00. (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

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