November 30, 2016 / 11:51 AM / a year ago

Sri Lankan rupee gains on exporter dollar sales

COLOMBO, Nov 30 (Reuters) - The Sri Lankan rupee ended 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 million swap.

However, dealers expect the rupee to be under pressure till seasonal inward remittances begin.

Rupee forwards were active while spot-next forwards ended at 148.90/149.00 per dollar, compared with Tuesday’s close of 149.15/25.

“There was month-end selling (of dollars) today and no major demand (for dollars),” said a currency dealer, asking not to be named.

The spot rupee was hardly traded, but was quoted at 148.40/149.00.

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 December.

Oil jumped more than 6 percent and the dollar, U.S. bond yields and stocks all pushed higher on Wednesday as signals from OPEC suggested the group was closing in on a deal to cut production. (Reporting by Ranga Sirilal; Editing by Vyas Mohan)

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