Rupee eases on importer dollar demand

REUTERS: The Sri Lankan rupee ended lower yesterday as importer dollar demand surpassed exporter sales, while fears of U.S. President-elect Donald Trump’s economic policies leading to a stronger greenback thereby triggering foreign fund outflows also weighed.

Dealers see the rupee being under pressure till seasonal inward remittances begin and on expected inflows, including the $200 million after the swap agreement with China Development Bank.
Rupee forwards were active while spot-next forwards ended at 149.00/02 per dollar, compared with Wednesday’s close of 148.90/149.00.

“Today there was some selling, but (the rupee) ended tad weaker due to late importer dollar demand,” said a currency dealer, asking not to be named.
The spot rupee was hardly traded, but was quoted at 148.10/60.
Dealers said the currency has been under pressure on fears Trump’s economic policies might lead to a rise in the dollar and trigger foreign fund outflows.
Foreign investors have net sold Rs.38.93 billion ($262.69 million) worth of government securities in the six weeks ended Nov. 23, ahead of an expected Fed rate hike in December.
Oil swept to a six-week high on Thursday, lifting energy shares in its slipstream, after OPEC agreed to cut crude output to clear a glut, while bond yields rose on prospects that resulting inflationary pressures will lead to higher interest rates.