October 7, 2014 / 12:17 PM / 5 years ago

Sri Lankan rupee ends tad weaker on importer dlr demand

COLOMBO, Oct 7 (Reuters) - The Sri Lankan rupee ended a tad weaker on Tuesday due to dollar demand from importers and banks, dealers said.

The spot currency ended at 130.32/36 per dollar compared with Friday’s close of 130.30/35. Both the stock and foreign exchange markets were closed on Monday for the Muslim holiday of Eid al-Adha.

The spot rupee was not quoted for two sessions through Thursday after the central bank limited the spot currency range to between 130.40 and 130.50, to prevent any sharp fall amid heavy equity selling and pullback by foreign investors from government securities.

Currency dealers expect the rupee to weaken further on the back of sustained selling by foreign investors in government securities, which are already at multi-year lows, and rising imports in a low interest rate environment.

Overseas investors sold a net 16.9 billion rupees ($129.7 million) worth of government securities in the week ended Oct. 1, data from the central bank showed. They sold a net 5.07 billion rupees in government securities in the week ended Sept. 24.

Both the stock and foreign exchange markets will remain closed on Wednesday for a Buddhist religious holiday. Normal trading will resume on Thursday. (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anupama Dwivedi)

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