IMF approval boosts Rupee

Monday, 13 June 2016 00:00 - - {{hitsCtrl.values.hits}}

The confirmation of IMF’s $ 1.5 billion Enhanced Fund Facility (EFF) to Sri Lanka by its Executive Board saw the USD/LKR rate appreciate during the week.

During the year up to 6 June, the rupee had depreciated by 1.3% against the US dollar.

Wealth Trust Securities said last week spot contracts became active after a laps of two month to close the week at Rs. 144.75/00 while its spot next contract was seen appreciating to a two month high of Rs. 144.80/10 on the back of export conversions and dollar selling by banks.

According to Central Bank data, the US Dollar exchange rate averaged Rs. 145.24, last week as against Rs. 146.99 a week ago. A year ago the rate was Rs. 134.05

Reuters quoting currency dealers said Rupee forwards rose on Friday as dollar conversions by foreign investors and banks surpassed importer demand for the US currency.

The spot rupee, which was traded actively for a third straight day, also rose, they added.

Dollar/rupee forwards, known as spot next, were at 145.00/05 per dollar, compared with Thursday’s close of 145.53/63.

Dealers said the spot currency, which on Wednesday started trading actively for the first time since 18 January, was active for a third straight day on Friday.

According to Wealth Trust Securities, the daily USD/LKR average traded volume for the first four days of the week stood at $ 60.54 million, marginally lower compared to $ 61.38 million in the corresponding period of the previous week.

Some of the forward dollar rates that prevailed in the market last week were one month – 145.50/75; three months – 147.20/50 and six months – 149.50/70.