Rupee ends firmer on remittances, dollar conversions

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

The spot rupee, which traded at 152.75/85 during the day, ended at 152.80/153.00 per dollar, compared with Thursday’s close of 152.85/95. 

“There was significant import demand today, we have seen some oil bills too but because of the remittances and exporter dollar sales rupee ended firmer,” said a currency dealer. 

The rupee has lost 2.2 percent so far this year, but currency dealers say dollar demand has slightly waned, lending support to the domestic currency. 

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.18.37 billion (US$120.18 million) this year as of yesterday’s close. They bought government securities worth a net Rs.62.4 billion as of Dec. 13, official data showed. 

Both the currency and stock markets will remain closed on Monday for a holiday and normal trading will resume on Tuesday.