COLOMBO Nov 30 The Sri Lankan rupee was trading
slightly higher on Wednesday, as exporter dollar sales surpassed
importer demand for the greenback after the central bank said it
was in advance talks with China Development Bank for a $200
However, dealers expect the rupee to be under pressure till
seasonal inward remittances begin.
Rupee forwards were active while spot-next forwards
were trading at 149.00/10 per dollar at 0652 GMT, compared with
Tuesday's close of 149.15/25.
"There is some selling today. Probably the central bank's
announcement of $200 million swap could ease the pressure," said
a currency dealer, asking not to be named.
The spot rupee was hardly traded, but was quoted at
Dealers said the currency has been under pressure on fears
of U.S. President-elect Donald Trump's economic policies leading
to a rise in the dollar and trigger foreign fund outflows.
Foreign investors have net sold 38.93 billion rupees
($262.69 million) worth of government securities in the six
weeks ended Nov. 23, ahead of an expected Fed rate hike in
Asian stocks tried to stabilise after a rocky November drew
to a close, but Wednesday's session brought new anxieties as
Chinese equities and commodities tanked amid worries that
Beijing's efforts to support its currency could squeeze
Sri Lankan shares were trading higher with the benchmark
Colombo stock index up 0.18 percent at 6,243.01 as of
0655 GMT. Turnover stood at 246.4 million rupees ($1.66
The market had shrugged off the central bank's key monetary
policy decision on Tuesday to keep rates unchanged.
($1 = 148.6000 Sri Lankan rupees)
(Reporting by Ranga Sirilal; Editing by Vyas Mohan)