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Friday, 30 October 2015 00:56 - - {{hitsCtrl.values.hits}}
Reuters: The rupee ended slightly weaker on Thursday as importer dollar demand outpaced greenback sales by exporters, dealers said.
The rupee ended at 140.95/00 per dollar, compared with Wednesday’s close of 140.85/95. The local currency ended stronger on Wednesday due to panic selling by exporters on fears of a rise in the currency after a sovereign bond sale.
Sri Lanka borrowed $1.5 billion via a 10-year sovereign bond sale on Tuesday at a 6.85% yield, down from an initial guidance of about 7%.
“The rupee is weaker due to importer demand. Panic selling by exporters, which was there in early trade, has also reduced,” a currency dealer said on condition of anonymity.
Some dealers said the bond inflows are unlikely to help the currency in the medium term because of the heavy repayment in the near future.
The rupee hit a record low of 141.40 per dollar on 28 September, but recovered slightly after a State-run bank sold dollars.
Reuters: Shares ended lower on Thursday for the first time in seven straight sessions as foreign investors sold shares in Commercial Bank of Ceylon
amid uncertainty as the US Federal Reserve revived expectations it may raise interest rates by year-end.
Foreign investors were net sellers of Rs. 319.1 million ($2.26 million) worth of shares on Thursday, extending the year-to-date net foreign outflow to Rs. 3.44 billion.
The main stock index ended down 0.34% at 7,070.13, from its highest close since 12 October hit in the previous session.
The day’s turnover was Rs. 898.8 million, less than this year’s daily average of Rs. 1.1 billion.
Shares in top lender Commercial Bank of Ceylon fell 1.38%, leading the fall in the overall index.
“Foreign selling in Commercial Bank brought down the market,” a stockbroker said on condition of anonymity. “We see some volatility until the Fed raises the rates.”
Stockbrokers also said the market is waiting for some clear direction from the Government.
Prime Minister Ranil Wickremesinghe is expected to announce the country’s economic policy on 5 November, Government sources said, outlining the Government’s economic priorities ahead of the 2016 Budget scheduled for 20 November.
