Rupee ends higher on weak demand for dollars

REUTERS: The Sri Lankan rupee closed firmer yesterday as inward remittances and exporter dollar sales surpassed demand for the US currency from importers, dealers said.

The spot rupee, which traded at 152.60 during the day, ended at 152.45/55 per dollar, compared with Tuesday’s close of 152.65/75.

“There were some remittance flows and exporter dollar sales, but more than that it’s because of the thin import demand as most of the companies are closed,” said a currency dealer.

The rupee has lost 1.9 percent so far this year, but currency dealers say dollar demand has slightly waned, lending support to the domestic currency.

The country’s Central Bank said on Tuesday it had received US $ 292.1 million in first payment from the leasing of Sri Lanka’s main southern port to China Merchant Port Holdings.