April 20, 2017 / 7:25 AM / in 8 months

CORRECTED-Sri Lankan rupee ends weaker on importer dollar demand (April 19)

(Correct Tuesday’s close to 153.15/25)

COLOMBO, April 19 (Reuters) - The Sri Lankan rupee closed lower for a second day on Wednesday as dollar demand from importers surged amid low supply of the greenback, dealers said.

Rupee forwards were active, with two-week forwards closing at 153.40/50 per dollar, compared with Tuesday’s close of 153.15/25.

“There was importer demand from small banks and we did not see much supply in the market,” said a currency dealer who requested anonymity.

“Some strong inflows could help ease the pressure.”

Another dealer said there was heavy demand for dollars from importers running high trade bills.

The market has not been impacted much after the central bank increased policy rates by 25 basis points last month, dealers added.

The island nation has received dollar inflows since the beginning of April, with foreign investors buying equities and government securities.

Overseas investors have net bought 9.72 billion rupees ($63.95 million) worth of equities in the last 19 consecutive sessions through Wednesday.

Offshore investors net bought government securities worth 1.87 billion rupees in the week ended April 12.

They have however net sold 62 billion rupees worth of government bonds so far this year. ($1 = 152.0000 Sri Lankan rupees) (Reporting by Shihar Aneez; Editing by Biju Dwarakanath)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below