Sri Lankan rupee steady; exporter dlr sales offset importer demand

Sept 8, 2016 (Reuters) – The Sri Lankan rupee traded steady on Thursday as mild dollar demand from importers was offset by exporters’ greenback sales, dealers said.

The spot rupee was at 145.40/46 per dollar at 0649 GMT, compared with Wednesday’s close of 145.40/45. One-week rupee forwards were at 145.60/65, compared with the previous day’s close of 145.65/70.

The spot rupee is usually managed by the central bank, and market participants use the forward market levels for guidance on the currency.

“Today there was not much of selling. The rupee is steady due to the mild importer (dollar) demand,” a currency dealer said, asking not to be named.

Dealers said seasonal importer demand would pick up from mid-October.

Central bank Governor Indrajith Coomaraswamy said last week that the currency was not under upward pressure as capital inflows had not been of sufficient magnitude to exert such pressure.

The central bank has largely not intervened to defend the rupee ever since a dual-tenure sovereign bond issue raised $1.5 billion in July.

Sri Lankan shares edged higher, with the benchmark Colombo stock index up 0.07 percent at 6,512.23 as of 0654 GMT. Turnover was at 581 million rupees ($4.00 million)