Rupee ends lower on importer dollar demand

Reuters - The Sri Lankan rupee ended weaker on Tuesday on importer dollar demand amid low supply of the greenback from exporters and banks, dealers said.

The spot rupee ended at 153.43/48 per dollar, compared with Monday’s close of 153.30/35.

“Today there was importer (dollar) demand throughout the day and we have seen some oil-related demand and demand from construction-related imports,” said a currency dealer who did not wish to be named.

“There were not much of dollar selling today.”

The rupee has been under pressure since January after the central bank stopped defending the currency and started buying the dollar to build up the country’s depleted foreign currency reserves.

The island nation saw Rs. 20.6 billion ($134.29 million) of net inflows into equities this year as of Tuesday’s close, and Rs. 31.1 billion worth inflows into government securities as of 4 October, official data showed.