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Sri Lankan rupee falls slightly on importer dollar demand
September 4, 2014 / 5:36 AM / 3 years ago

Sri Lankan rupee falls slightly on importer dollar demand

COLOMBO, Sept 4 (Reuters) - The Sri Lankan rupee traded a tad weaker against the dollar on Thursday as importer demand for the greenback outpaced inward remittances and selling of the U.S. currency by exporters, dealers said.

They expect the local currency to remain steady for the rest of the year after central bank Governor Ajith Nivard Cabraal said recently the banking regulator would intervene in the thinly-traded market whenever needed to keep the rupee stable.

The rupee was at 130.21/24 per dollar at 0512 GMT, weaker than Wednesday’s close of 130.19/21.

“The rupee is weaker amid importer dollar demand but the appreciation trend is intact and NSB bond proceeds are also expected,” said a currency dealer.

Dealers said they are waiting for the results of National Savings Bank’s dollar bond sale.

Foreign investors bought a net 250 million rupees ($1.9 million) worth of government securities in the week ended Aug. 27, official data showed.

The central bank did not offer 91-day t-bills at the weekly auction on Wednesday after it rejected all bids in the last two auctions, while yields on the 182-day and the 364-day treasury bills held steady for the third time.

Sri Lankan shares were up 0.08 percent, or 5.91 points, at 7,053.01 at 0515 GMT, their more than three-year high.

Turnover was 367.5 million rupees ($2.82 million), with 10.3 million shares changing hands. ($1 = 130.1800 Sri Lankan rupee) (Reporting by Ranga Sirilal; Editing by Subhranshu Sahu)

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