Rupee snaps winning edge; stocks hit two-week high

REUTERS: The rupee snapped a six-session winning streak to end lower yesterday due to importer dollar demand, but greenback inflows from inward remittances ahead of the traditional new year capped further decline, sources said. 

The currency edged down at 174.60/80 to the dollar, compared with Tuesday’s close of 174.45/60. 

The island nation’s currency gained 2.1% in the last six sessions through Tuesday, and 4.6% so far this year, as exporters converted dollars and foreign investors purchased government securities amid stabilising investor confidence after the country repaid a $ 1 billion sovereign bond in mid-January. There was a steady flow of inward remittances, ahead of the Sinhala-Hindu New Year on 14 April. 

The Colombo Stock Exchange index ended 0.34% higher at 5,597.37 yesterday, its highest close since 18 March. 

The benchmark stock index rose 0.31% last week, recording its first weekly gain in eight weeks. The index has declined 7.5% so far this year. 

The market awaits some positive news from the third and final vote on the 2019 Budget scheduled for 5 April, market sources said. 

Turnover came in at Rs. 405.2 million ($ 2.32 million), less than this year’s daily average of Rs. 640.2 million. Last year’s daily average came in at Rs. 834 million. 

Foreign investors bought a net Rs. 205.7 million worth of shares yesterday, but they have been net sellers of Rs. 5.5 billion worth of equities so far this year.