Rupee edges up on banks’ dollar sales; Budget in focus

Wednesday, 8 November 2017 00:00 - - {{hitsCtrl.values.hits}}

Reuters: The rupee ended firmer on Tuesday as dollar sales by foreign banks outpaced strong importer demand for the greenback, while most market participants awaited cues from the national budget later this week, dealers said.

The spot rupee closed at 153.40/45 per dollar, compared with Monday’s close of 153.55/60.

“Foreign banks’ dollar sales helped the gain. There was huge demand from importers and the market was very active,” a currency dealer said, asking not to be named.

Sri Lanka’s Central Bank on Tuesday revised down its economic growth forecast to between 4% and 4.5% for this year after holding its key interest rates steady as it focuses on supporting a faltering economy.

Currency dealers said the market was also waiting for direction from the national budget, scheduled to be unveiled on Thursday.

The rupee has slipped 2.5% so far this year.

The island-nation has seen Rs. 20.3 billion ($ 132.38 million) worth of net inflows into equities this year as of Tuesday’s close, and Rs. 42.7 billion into government securities as of 1 November, official data showed.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.