Wednesday Nov 13, 2024
Wednesday Nov 13, 2024
Saturday, 29 April 2017 00:00 - - {{hitsCtrl.values.hits}}
Reuters - The rupee fell on Friday on importer dollar demand, while bond yields dropped for a second day with the market expecting the local currency to trade steady on expected dollar inflows, dealers said.
Sri Lanka expects to raise up to $1.5 billion via a sovereign bond issuance, while another $1 billion is expected from two separate syndicated loans.
Rupee forwards were active, with two-week forwards closing at 153.30/40 per dollar, compared with Thursday’s close of 153.15/30.
“The rupee will stabilise with higher dollar liquidity after the inflows,” a currency dealer said, asking not to be named.
“Bond yields fell around 20 basis points and foreign investors were buying bonds.”
A government move to double the borrowing limit of development bonds to $3 billion in 2017 is also expected to increase liquidity.
Finance Minister Ravi Karunanayake on Thursday blamed “technical difficulties” for a two-month delay in receiving an around $160 million loan tranche from the IMF and said the disbursement was expected after June 14.
Sri Lanka has seen a rise in foreign inflows into equities and government securities since early this month, with foreign investors buying shares worth a net Rs. 13.7 billion in 26 consecutive sessions through Friday.
Foreign investors have also net-bought government securities worth Rs. 4.17 billion in the week ended 19 April, although they have net-sold Rs. 58 billion worth of Government bonds so far this year.
