Thursday, 20 June 2013 01:02
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Reuters: The rupee edged up on Wednesday due to late dollar sales by exporters on thin volume, with the central bank not intervening in the currency market, but depreciation pressure on the rupee still remains a concern.
“The rupee ended firmer due to last-minute dollar sales by exporters and foreign banks,” a currency dealer said on condition of anonymity.
The rupee closed at 128.10/20 to the dollar, firmer from Tuesday’s close of 128.50/60.The rupee lost 1.6% last week.
It fell to 129.00/129.10 per dollar in early trades on Friday, its lowest in more than six months, as foreign investors sold debt as part of a broader selloff in emerging markets on fears that loose global monetary conditions were about to end.
The rupee has weakened 0.5% so far this year following a 10.7% depreciation in 2012 as the Central Bank opted for a flexible exchange rate regime in February 2012.
The main stock index edged up from a five-week closing low in the previous session, on thin turnover as investors picked up select blue chips such as Ceylon Tobacco PLC and John Keells Holdings PLC.
The bourse ended 0.26%, or 16.23 points, firmer at 6,209.23, edging up from its lowest close since May 6.
It hit a five-week low on Tuesday on concerns over a possible pullout by foreign funds, following regional peers.
After the market closed, sources told Reuters that top conglomerate and market heavyweight John Keells Holdings will sign a $ 640 million deal to establish an integrated hotel complex.
Shares in Keells closed up 0.38% at Rs. 265 per share.
Analysts, however, said the deal may not boost Keells’ share prices as it has already been factored in.
“There was a rumour on this deal and we believe Keells’ share price is bloated on speculation,” one analyst said on condition of anonymity.
Shares in Keells hit a record high of Rs. 299.80 on 21 May, but have fallen since then.
The market witnessed net foreign inflows of Rs. 64.25 million ($ 499,800) on Wednesday, extending foreign inflows so far this year to Rs. 16.22 billion.
The day’s turnover was at Rs. 343.8 million, well below this year’s daily average of Rs. 1.01 billion.
