| Rupee forwards end weaker on importer dollar demand
Reuters: Rupee forwards ended slightly weaker on Friday due to importer dollar demand, while exporters awaited clarity on economic policy from the newly elected government, led by President Maithripala Sirisena.
Four-day forwards, which were actively traded, closed down at 132.35/45 per dollar compared with Tuesday’s close of 132.25/35.
The market was closed for a special holiday on Wednesday in view of Pope Francis’ visit to Sri Lanka, while it was shut for a Hindu religious holiday on Thursday.
“There was importer dollar demand while the exporters awaited to see the policies of the new government,” a currency dealer said.
Sirisena announced an interim cabinet on Monday and said he would carry out reforms to fight corruption in the 100 days to a parliamentary election.
The market is expecting a flexible exchange rate with more foreign grants under Sirisena’s rule as opposed to the fixed and controlled exchange rate regime under the previous government.
The spot currency was not traded on Friday.
Sri Lankan spots traded in a band between 130.00 and 131.75 rupees throughout 2014 following the Central Bank’s move to limit volatility in the currency and ensure a stable exchange rate.