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Sri Lankan rupee eases on importer dollar demand
December 1, 2016 / 11:51 AM / a year ago

Sri Lankan rupee eases on importer dollar demand

COLOMBO, Dec 1 (Reuters) - The Sri Lankan rupee ended lower on Thursday as importer dollar demand surpassed exporter sales, while fears of U.S. President-elect Donald Trump’s economic policies leading to a stronger greenback thereby triggering foreign fund outflows also weighed.

Dealers see the rupee being under pressure till seasonal inward remittances begin and on expected inflows, including the $200 million after the swap agreement with China Development Bank.

Rupee forwards were active while spot-next forwards ended at 149.00/02 per dollar, compared with Wednesday’s close of 148.90/149.00.

“Today there was some selling, but (the rupee) ended tad weaker due to late importer dollar demand,” said a currency dealer, asking not to be named.

The spot rupee was hardly traded, but was quoted at 148.10/60.

Dealers said the currency has been under pressure on fears Trump’s economic policies might lead 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 swept to a six-week high on Thursday, lifting energy shares in its slipstream, after OPEC agreed to cut crude output to clear a glut, while bond yields rose on prospects that resulting inflationary pressures will lead to higher interest rates. (Reporting by Ranga Sirilal; Editing by Vyas Mohan)

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