Importer demand for dollars sees rupee slip from 9-month high

Reuters: The rupee edged down in sluggish trade on Friday, coming off a nine-month high due to mild importer dollar demand, dealers said.

The rupee closed at 126.25/26 to the dollar from Thursday’s close of 126.12/20, traders said.

“There was not much pressure on the rupee due to dull trade. Some importer selling was seen,” a currency dealer said on condition of anonymity.

The local currency rose to a nine-month high on Thursday due to foreign inflows into Government securities despite the central bank buying dollars to prevent a rapid appreciation.

Dealers expect the rupee to gain on hopes of inflows into Government securities after the Government’s debt office on Wednesday said Sri Lanka could accommodate up to Rs. 60 billion foreign investment in T-bonds and bills this year.

Stocks edged up in thin trade led by telecom shares. The main share index closed 0.25 per cent, or 14.28 points, up at 5,746.49.

Foreign investors were net sellers of Rs. 14.37 million ($ 114,000) worth shares after being net buyers of a record Rs. 38.63 billion worth of shares last year.

Turnover was Rs. 454.2 million ($ 3.60 million).