Rupee ends weaker on late importer dollar demand

Tuesday, 6 December 2016 00:01 -     - {{hitsCtrl.values.hits}}

Reuters: The Sri Lankan rupee ended slightly weaker on Monday as late importer dollar demand surpassed exporters’ greenback sales, dealers said.

Rupee forwards SLKR were active while spot-next forwards ended at 148.80/90 per dollar, compared with Friday’s close of 148.75/85.

“Rupee ended a tad weaker due to late importer (dollar) demand,” said a currency dealer, asking not to be named.

Dealers said they expect the depreciation pressure to ease with the subdued importer demand and seasonal inward remittances ahead of the year-end festival season.

The spot rupee was hardly traded, but was quoted at 148.10/85.

However, a few dealers expect the rupee to be under pressure on fears that the U.S. President-elect Donald Trump’s economic policies will lead to a stronger greenback and foreign fund outflows.

They expect the pressure to ease when seasonal inward remittances begin and on expected inflows, including the $200 million after the swap agreement with China Development Bank. 

Foreign investors have net sold 42.1 billion rupees worth of government securities in the seven weeks ended Nov. 30, ahead of an expected Fed rate hike in December.