June 20, 2017 / 1:00 PM / 5 months ago

Sri Lankan rupee ends weaker on importer dollar demand

COLOMBO, June 20 (Reuters) - The Sri Lankan rupee ended weaker on Tuesday as dollar demand from importers weighed on the spot currency, which traded for a second straight session after six weeks.

The spot rupee started trading on Monday for the first time since May 5 when the central bank fixed the spot reference rate at 152.50.

The spot rupee ended at 153.30/40 per dollar, weaker from Monday’s close of 153.18/23.

“There was some (dollar) buying, but not large volumes. There was general importer demand,” said a currency dealer, requesting anonymity.

Dealers said they expect seasonal demand for dollars to pick up from August.

The central bank has set a target of $1.2 billion in direct market purchases of dollars to boost the island nation’s reserves this year, mainly to achieve a target set by the International Monetary Fund in return for a three-year $1.5 billion loan.

Foreign investors bought a net 7.93 billion rupees ($51.8 million) worth of government securities in the week ended June 14. They have sold a net 32.03 billion rupees worth of government bonds so far this year. ($1 = 152.9500 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below