Rupee falls to near 3-week low on importer dollar demand
Friday, 14 March 2014 06:51
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REUTERS:The Sri Lankan rupee fell to a near three-week low on Thursday on importer dollar demand in the absence of any Central Bank intervention, dealers said.
The spot rupee ended at Rs. 130.68/75 per dollar, its weakest close since 28 February and down from Wednesday’s close of Rs. 130.60/65.
“There was importer demand in the morning and a state bank bought (dollars),” a currency dealer said on condition of anonymity.
Dealers said the rupee was expected to trade in the range of Rs. 130.50 to Rs. 130.75 in the near future.
The currency has gained 0.25% in the last 11 sessions through Thursday, Thomson Reuters data showed. It has been on a rising trend since 27 February amid weak demand for dollars from importers, dealers said.
The market, however, expects downward pressure due to high imports for the traditional new year in mid-April and outflows from equities, though the depreciation is expected to be mild as the Central Bank has strong reserves to defend the rupee.
Foreign investors sold a net Rs. 5.2 billion worth of stocks in 24 straight sessions through Thursday, and sold a net Rs. 4.57 billion worth of government securities for the week ended 5 March.
The rupee has gained about 3.4% since it hit a record low of Rs. 135.20 on 28 August last year. It lost 2.5% in 2013.
