Sri Lankan rupee weaker on importer dollar demand

Sept 14, 2016 (Reuters) – The Sri Lankan rupee edged down on Wednesday as importer dollar demand surpassed mild exporter sales of the U.S. currency, dealers said.

At 0608 GMT, the spot rupee was at 145.42/50 per dollar, slightly weaker from Tuesday’s close of 145.38/43. One-week forwards were at 145.65/75, compared with the previous day’s close of 145.60/70.

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

“Rupee is under pressure on importer demand,” a currency dealer said, asking not to be named.

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 0.07 percent at 6,512.81 as of 0610 GMT. Turnover was at 404 million rupees ($2.78 million).