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Sri Lankan rupee ends firmer as exporters, banks sell dollars
November 7, 2016 / 11:48 AM / a year ago

Sri Lankan rupee ends firmer as exporters, banks sell dollars

COLOMBO, Nov 7 (Reuters) - The Sri Lankan rupee ended firmer on Monday as dollar selling by exporters and banks outpaced demand for the greenback from importers, dealers said.

Rupee forwards were active, as one-week forwards edged up to close at 148.20/30 per dollar, compared with Friday’s close of 148.35/45.

“Rupee ended firmer on dollar sales by exporters and banks,” a currency dealer said, asking not to be named.

The rupee has also been hit by selling of government securities by foreign investors, dealers said.

Foreign investors have net sold 24.5 billion rupees ($165.60 million) worth of government securities in the three weeks ended Nov. 2, data from the central bank showed.

The Sri Lankan central bank governor said last week that he expected the rupee to stabilise when a stake sale, worth $1 billion, in the southern port of Hambantota to a Chinese investor is completed in four to five months.

Governor Indrajit Coomaraswamy said proceeds of the stake sale would be converted into rupees, easing the strain on the currency that has been under pressure since mid-September due to seasonal demand for the U.S. dollar from importers. (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry Jacob-Phillips)

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