COLOMBO Jan 7 The Sri Lankan rupee ended weaker
on Tuesday due to dollar demand from importers and foreigners
who sold rupee bonds, but dealers expect the currency to gain on
an expected $1 billion inflow next week from a bond sale.
The spot rupee ended at 130.80/90 per dollar, weaker
from Monday's close of 130.70/75.
A currency dealer said a one-off rupee bond sale by some
foreign investors pulled the currency down.
Dealers said the rupee is under pressure to appreciate, but
the level of appreciation would depend on what the central bank
wants to do.
"If it (central bank) wants to keep the rupee at the current
level and support exporters, then it would buy all the bond
inflows," said a currency dealer on condition of anonymity.
A source close to the sovereign bond deal said the inflows
are expected next week.
Sri Lanka priced a $1 billion, five-year sovereign bond at
par to yield 6 percent, coming inside initial talk of 6.25
percent area and at the tight end of the final guidance of
Revealing its financial and monetary policies for 2014, the
central bank said on Thursday it expected the rupee to
strengthen in the medium term and the central bank's direct
intervention in the foreign exchange market would be minimum.
The local currency has gained about 3.3 percent since it hit
a record low of 135.20 on Aug. 28. It lost 2.5 percent in 2013.
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by