Rupee weaker on importer dollar demand; stocks steady

Reuters: The rupee ended weaker on importer demand for dollars on Monday while the stock market inched higher on retail buying.

The rupee closed at 131.70/132.10 against the dollar from Friday’s close of 131.50/70. Three currency dealers said a State bank sold dollars, preventing the rupee weakening further. The stock market edged up on retail buying in light volumes ahead of a Tuesday meeting with Treasury Secretary P.B. Jayasundera to discuss some policy changes that could boost an ailing Bourse, which has fallen 18.8% so far this year.

The meeting follows a 20 July meeting by President Mahinda Rajapaksa, who is also the country’s Finance Minister, to discuss issues related to trading. The Colombo Stock Exchange’s main index edged up 0.05 per cent, or 2.42 points, to 4,935.51. The day’s turnover of Rs. 288.2 million ($ 2.18 million) was well below this year’s daily average of Rs. 895.2 million. Foreign investors were net buyers for a seventh straight session on Monday, buying a net Rs. 1.2 million worth of shares, extending the net foreign inflow so far this year to Rs. 24.1 billion.