Rupee ends weaker on importer dollar demand

Saturday, 22 October 2016 00:00 - - {{hitsCtrl.values.hits}}

Reuters - The Sri Lankan rupee ended weaker on Friday, as dollar demand from importers surpassed conversions of the U.S. currency by exporters, dealers said.

Rupee forwards were active, with the spot-next ending at 147.60/70 per dollar, weaker than its previous close of 147.45/50.

The spot rupee is usually managed by the Central Bank, and market participants use the forward market levels for guidance on the currency.

The spot rupee was quoted at 146.90/95 per dollar, but was hardly traded.

“The importer demand was there and there were not much of remittances. Still, the rupee is under downward pressure because of the seasonal demand,” said a currency dealer, asking not to be named.

Dealers said the market was waiting for some direction from the national budget that is scheduled to be announced on 10 November.

Foreign investors sold Rs.1.8 billion worth of government securities during the week ended 19 October, data from the Central Bank showed.