Rupee ends steady in dull trade

Reuters: The rupee ended steady yesterday as dollar demand from importers offset greenback selling by exporters in dull trade ahead of the long weekend, traders said.

The rupee ended flat at 159.50/60 per dollar. It has declined 3.98% so far this year and had hit a record low of 160.17 on 20 June.

“Today, there weren’t many trades. Everybody is in a holiday mood ahead of the long weekend,” said a currency dealer, asking not to be named.

The stocks, bond and foreign exchange markets are closed today for a public holiday and will resume trading on Monday.

Chinese President Xi Jinping has offered Sri Lanka a fresh grant of CNY 2 billion ($ 295 million), as Beijing looks to expand its influence in the country.

Dealers have said the grant announced on 21 July helped ease the pressure on the currency.

Sri Lanka’s Central Bank Governor Indrajit Coomaraswamy had said earlier that the rupee’s decline was driven mainly by factors outside of Sri Lanka and that emerging-market currencies were under pressure.

Foreign investors sold government securities worth a net Rs. 1.98 billion ($ 12.4 million) in the week ended 18 July, bringing the outflows so far this year to Rs. 31.6 billion, Central Bank data showed.