August 29, 2016 / 11:50 AM / 3 years ago

Sri Lankan rupee ends firmer on exporter dollar sales

COLOMBO, Aug 29 (Reuters) - The Sri Lankan rupee ended firmer on Monday as exporter dollar sales surpassed importer demand for the greenback, dealers said.

Sri Lanka made an impressive return to the loan markets after eight years to seal its largest syndicated facility after increasing its three-year borrowing to $700 million from a targeted size of up to $500 million, IFR reported.

The spot rupee ended at 145.60/65 per dollar, compared with Friday’s close of 145.75/85, while one-week rupee forwards closed at 145.75/85, compared with the previous close of 145.95/146.00.

“The rupee was firmer with exporter (dollar) sales,” a dealer said, asking not to be named.

Dealers said the central bank was not seen intervening in the market. Officials from the central bank were not available to comment on whether it had stopped giving direction on the spot rate.

The spot rupee is usually managed by the central bank, and market participants use the forward market levels for guidance on the currency.

The central bank has largely not intervened to defend the rupee ever since a dual-tenure sovereign bond issue raised $1.5 billion in July.

Net foreign inflows into government securities jumped 31.4 percent to 302.4 billion rupees ($2.08 billion) through Aug. 24 since the International Monetary Fund approved a three-year, $1.5 billion loan on June 4, according to the latest central bank data. (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

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