Rupee ends lower as banks, importers buy dollar

Reuters - The Sri Lankan rupee ended marginally lower on Wednesday as dollar demand from importers and banks surpassed selling of the greenback by exporters, dealers said.

The spot rupee ended at 152.90/153.00 per dollar, down from Tuesday’s close of 152.80/90.

“There was sizable demand toady. We have seen some demand from state banks, probably to pay oil bills. A foreign bank bought dollars, may be for a payment,” said a currency dealer, requesting anonymity.

“Exporters were silent.”

Dealers said the rupee will be under pressure with some equity related transactions.

After market hours, diversified conglomerate Hayleys Plc said it will purchase 61.73% of Singer Sri Lanka Plc for Rs. 10.9 billion ($71.27 million).

The rupee has been under pressure since January after the central bank stopped defending the currency and started buying dollars to build up the country’s depleted foreign currency reserves.

The island nation had seen Rs. 27.6 billion of net inflows into equities up to Wednesday’s close, and Rs. 6.6 billion worth inflows into government securities as of 6 September, official data showed.