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4 months ago
Sri Lankan rupee down on importer dollar demand ahead of new year
April 12, 2017 / 6:05 AM / 4 months ago

Sri Lankan rupee down on importer dollar demand ahead of new year

COLOMBO, April 12 (Reuters) - The Sri Lankan rupee edged down on Wednesday as importer dollar demand and dividend payments outpaced mild inward remittances ahead of the traditional new year holidays, dealers said.

Rupee forwards were active, with two-week forwards trading at 153.35/50 per dollar at 0550 GMT, compared with Tuesday's close of 153.30/45.

"Today we can see demand from small banks too. But conversions are very less as most of the companies are closed for the new year," said a currency dealer who requested anonymity.

Sri Lanka will celebrate its traditional new year this week and the markets will be closed on Thursday and Friday.

The rupee has been under pressure due to increased seasonal imports ahead of the new year, although dealers expect the pressure to ease with seasonal inward remittances.

Outflows due to rupee bond sales by foreign investors have also been putting pressure on the currency.

Foreign investors net bought government securities worth 259.5 million rupees ($1.71 million) in the week ended April 5. However, they net sold 63.9 billion rupees worth of such instruments so far this year.

Sri Lankan shares were up 0.51 percent at 6,337.74 as of 0551 GMT. Turnover stood at 1.03 billion rupees ($6.79 million). ($1 = 151.6000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

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