Rupee ends tad weaker on importer dollar demand

Wednesday, 8 October 2014 00:46 - - {{hitsCtrl.values.hits}}

Reuters: The rupee ended a tad weaker on Tuesday due to dollar demand from importers and banks, dealers said. The spot currency ended at 130.32/36 per dollar compared with Friday’s close of 130.30/35. Both the stock and foreign exchange markets were closed on Monday for the Muslim holiday of Eid al-Adha. The spot rupee was not quoted for two sessions through Thursday after the Central Bank limited the spot currency range to between 130.40 and 130.50, to prevent any sharp fall amid heavy equity selling and pullback by foreign investors from Government securities. Currency dealers expect the rupee to weaken further on the back of sustained selling by foreign investors in Government securities, which are already at multi-year lows, and rising imports in a low interest rate environment. Overseas investors sold a net Rs. 16.9 billion ($129.7 million) worth of Government securities in the week ended 1 October, data from the Central Bank showed. They sold a net Rs. 5.07 billion in Government securities in the week ended 24 September. Both the stock and foreign exchange markets will remain closed on Wednesday for a Buddhist religious holiday. Normal trading will resume on Thursday.

Bourse slips from near 3-1/2 year closing high

Reuters: Stocks ended a tad weaker on Tuesday after hitting their near three-and-a-half-year closing high in the previous session, led by market heavyweight John Keells Holdings Plc while investors waited for cues from September-quarter earnings. The main stock index ended 0.14%, or 10.59 points, weaker at 7,396.01 after marking its highest close since 31 May 2011 on Friday. “There was a bit of profit taking in John Keells, which brought the market down. The earning season is also around the corner and all are waiting to see the results,” said a stockbroker asking not to be named. Foreign investors sold a net Rs. 12.5 million worth of shares on Tuesday, but they have been net buyers of Rs. 9.69 billion so far this year, exchange data shows. John Keells ended 2.58% weaker at Rs. 253.10, while Hayleys Plc fell 5.16% to Rs. 340. The day’s turnover was Rs. 1.74 billion ($13.35 million), more than this year’s daily average of over Rs. 1.35 billion. Stock and foreign exchange markets were closed on Monday for the Muslim holiday of Eid al-Adha, while they will remain closed on Wednesday for a Buddhist religious holiday. Normal trading will resume on Thursday.