Rupee edges down on importer demand
Reuters: The rupee ended weaker on Tuesday as importer dollar demand outpaced inward remittances and exporter dollar sales, dealers said.
The local currency is likely to remain steady for the rest of the year after positive comments by the Central Bank Chief last week, they added.
Central Bank Governor Ajith Nivard Cabraal said last week the banking regulator would intervene in the thinly-traded market whenever needed to keep the rupee stable.
The rupee ended at 130.20/22 per dollar, weaker from Monday’s close of 130.18/20.
“There was importer (dollar) demand but nobody traded above 130.20,” a currency dealer said.
Dealers said one of the two State banks, through which the Central Bank usually intervenes to stem major declines in the currency, bought dollars at 130.19 and other dealers did not trade above 130.20, which was seen as the level which the Central Bank is comfortable with.
Foreign investors bought a net Rs. 1.81 billion ($ 13.9 million) worth of Government securities in the week ended 20 August, official data showed.
The People’s Bank of China on Monday said it would allow the Central Bank of Sri Lanka to invest in the country’s interbank bond market.
The Central Bank in a statement said the agreement with the People’s Bank of China will enable the bank to further diversify its reserves management activities into Chinese renminbi-denominated assets.