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Sri Lankan rupee ends weaker on importer dollar demand
April 18, 2017 / 11:33 AM / 8 months ago

Sri Lankan rupee ends weaker on importer dollar demand

COLOMBO, April 18 (Reuters) - The Sri Lankan rupee closed weaker on Tuesday due to dollar demand from importers, but the currency is expected to steady in the near term, dealers said.

Rupee forwards were active, with two-week forwards ending at 153.15/25 per dollar, compared with Monday’s close of 152.95/153.10.

“There is some importer demand and we see the currency stabilising at these levels,” said a currency dealer who requested anonymity.

“Given the central bank’s spot currency reference rate at 151.90, two-week forwards should be around 152.80/90.”

The currency was under pressure due to higher dollar demand from importers and selling of government securities by foreign investors until early this month.

Foreign investors have, however, turned net buyers of both equities and government securities since early this month.

Overseas investors have net bought 5.23 billion rupees worth of equities in the last 17 consecutive sessions. They also net bought government securities worth 1.87 billion rupees in the week ended April 12.

However, they have net sold 62 billion rupees worth of government bonds so far this year. (Reporting by Shihar Aneez; Editing by Biju Dwarakanath)

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