Thursday Nov 14, 2024
Thursday Nov 14, 2024
Saturday, 14 May 2016 00:00 - - {{hitsCtrl.values.hits}}
Reuters - The Sri Lankan rupee ended weaker on Friday on importer dollar demand but the decline was limited due to mild greenback sales by banks and moral suasion by the Central Bank, dealers said.
Downward pressure on the local currency is likely to ease on expected fund inflows following the island nation’s loan deal with the International Monetary Fund and a plan to raise $1.5 billion through the sale of a 10-year sovereign bond within the next few days, dealers said.
The spot rupee reference rate was at 145.75, the dealers said.
The banking regulator had fixed the spot trading rate at 143.90 per dollar until 2 May, dealers said. Central Bank officials were not available to comment on whether it had intervened in the forex market.
“There was importer (dollar) demand but there were not much of (dollar) conversions,” a currency dealer said, asking not to be named.
Trading in the spot currency has been intermittent since 27 January and on Friday the spot was barely bid, but some movement in short-term dollar/rupee forwards indicated the rupee was weaker.
The spot next dollar/rupee forwards ended at 146.40/50 per dollar, compared with Thursday’s close of 146.35/40.
The spot next, which acts as a proxy for the spot currency, indicates the exchange rate for the day following the conventional spot settlement and was five days ahead for Friday’s trade.
