COLOMBO, April 25 The Sri Lankan rupee closed
slightly weaker on Tuesday on light importer dollar demand, but
the currency is expected to trade in a narrow range until the
market sees direction from an IMF loan tranche disbursement and
sovereign bond sale, dealers said.
The rupee forwards were active, with two-week
forwards closing at 153.25/30 per dollar, weaker from Monday's
close of 153.10/20.
"The rupee will be steady between a narrow range of
153.10-153.40 until we see some direction. We don't see any
depreciation pressure now," a currency dealer said, asking not
to be named.
The IMF is yet to approve the third tranche of a
$1.5-billion loan, and the market expects the approval to help
boost sentiment. Finance Minister Ravi Karunanayake met IMF
officials in Washington last week.
Government officials have said authorities would go for an
up to $1.5 billion sovereign bond sale "soon".
Sri Lanka has seen a surge in foreign inflows into equities
and government securities since early this month.
Foreign investors bought equities worth a net 12.1 billion
rupees in 23 consecutive sessions through Tuesday.
They also bought government securities worth 4.17 billion
rupees in the week ended April 19 on a net basis. However, they
have been net sellers to the tune of 58 billion worth of
government bonds so far this year.
(Reporting by Shihar Aneez; Editing by Amrutha Gayathri)