Rupee ends firm on bank, exporter dollar sales

Reuters: The Sri Lankan rupee ended slightly firmer on Thursday, a few minutes into the presentation of the national budget, as dollar selling by exporters and banks outpaced demand for the greenback from importers, dealers said.

Rupee forwards were active, with spot-next forwards ending at 147.85/95 per dollar compared with Wednesday’s close of 147.90/95.

One-week forwards ended at 148.00/10 per dollar, little changed from Wednesday’s close of 148.05/15.

“There were some exporter sales and bank selling as they are expecting rupee to ease” due to remittances after the budget, a currency dealer said, requesting anonymity.

Finance Minister Ravi Karunanayake’s budget included the revision of corporate tax, withholding tax to boost the revenue and cut the fiscal deficit to 4.6% of the GDP from this year’s 5.4%.

Foreign investors net sold Rs. 24.5 b worth of Government securities in the three weeks ended 2 November, data from the Central Bank showed.