Sri Lankan rupee trades weaker on importer dollar demand; stocks rise

Sept 13, 2016 (Reuters) – The Sri Lankan rupee edged down on Tuesday as importer dollar demand surpassed mild selling of the U.S. currency by exporters, dealers said.

The spot rupee was trading at 145.40/50 per dollar, down from Friday’s close of 145.25/35 as of 0700 GMT. One-week forwards were at 145.55/65, compared with the previous day’s close of 145.50/60.

Markets were closed on Monday for the Eid al-Adha holiday.

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

“The importer demand is there today and there are not much exports. The remittances have also dried out,” a currency dealer said, asking not to be named.

The rupee strengthened 0.28 percent on Thursday on inward remittances ahead of Eid al-Adha.

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

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.

Meanwhile, Sri Lankan shares edged up, with the benchmark Colombo stock index up 0.14 percent at 6,503.98 as of 0701 GMT. Turnover was at 177.5 million rupees ($1.22 million).