Rupee ends weaker

COLOMBO (Reuters) - Sri Lankan rupee closed weaker yesterday on importer dollar demand, while foreign outflows from government securities also weighed on the currency. 
Equities snapped two consecutive sessions of gains to end lower. 

The rupee closed 0.1 percent weaker at 180.55/65 per dollar compared to Monday’s close of 180.45/55. However, the currency is up 1.1 percent this year.

 Analysts said foreign outflows from government securities have shown a declining trend and the market is now waiting for foreign investors to reverse the selling trend.
The Central Bank does not release foreign flow data on a daily basis, but weekly data in the past four weeks has shown an outflow.

Foreign investors sold government securities worth Rs.598.9 million in the week ended Sept. 11 for a fourth straight week, data showed, extending the year to date net foreign outflow to Rs.54.3 billion through Sept. 11, Central Bank data showed. 

Meanwhile, the benchmark stock index ended 0.29 percent down at 5,811.07. The bourse was up 0.47 percent for last week. 

Investors have been in a wait-and-watch mode since the main opposition party named a hardline former defence chief as its presidential candidate. 

So far this year, the stock index has dropped about 4 percent.

Equity market turnover was Rs.4.6 billion (US$25.48 million), its highest close since July.15 and well above this year’s daily average of about Rs.671.6 million so far. Last year’s daily average was Rs.834 million. 

Foreign investors sold a net Rs.8.6 million worth of shares, extending the year-to-date net foreign outflow to Rs.2.29 billion worth of equities, according to 
index data.