Rupee ends firmer on dollar sales

REUTERS: The Sri Lankan rupee ended firmer for a fourth straight session yesterday as greenback sales by exporters and banks outpaced importer dollar demand, dealers said.
Rupee forwards were active with two-week forwards ending slightly firmer at 151.70/80 per dollar, compared with Tuesday’s close of 151.80/152.00.
Spot rupee ended steady at 151.25/40 per dollar.
“There was some (dollars) selling from a state bank time-to-time. I don’t think it is the intervention. They must have sold their positions,” said a currency dealer, who requested not to be identified.
“There were no (foreign) bond sellers in the past few days, that is the main reason for the currency to stay at these levels.”
Dealers added that exports could be hurt as severe drought has affected the production of tea and other commodities.
“The rupee will be under pressure with higher oil imports due to drought,” the currency dealer said.
The rupee is under pressure due to dollar demand from importers ahead of the traditional Sinhala-Tamil New Year in mid-April, and as foreign investors continue to sell government securities, dealers stated.