Rupee ends weaker on importer dollar demand

REUTERS: The Sri Lankan rupee closed weaker yesterday on importer dollar demand, after recent gains due to year-end remittances and selling of the U.S. currency by exporters, dealers said.

The spot rupee ended at 153.25/35 per dollar, weaker than Tuesday’s close of 153.00/10.
“Today, the rupee weakened due to some importer (dollar) demand... State banks were also seen buying,” said a currency dealer, adding that demand for the local currency came after it stayed around 153.00 levels for the last couple of days.

The rupee has lost 2.3 percent so far this year, but currency dealers say dollar demand has slightly waned, lending support to 
the rupee.

The market has been waiting for more clarity over a foreign exchange management act introduced by the government last month.

Foreign investors have net bought equities worth Rs.18.47 billion this year as of yesterday’s close. They had bought government securities worth a net Rs.60.4 billion as of December 6, official data showed.