Rupee, bourse up

Tuesday, 9 April 2013 01:39 -     - {{hitsCtrl.values.hits}}

Reuters: The rupee gained slightly to its highest close in a year on Monday on dollar inflows from inward remittances and exporter conversions ahead of the traditional new year, dealers said.

The rupee edged up to 125.50/55 to the dollar, from Friday’s close of 125.50/70, its strongest close since 9 April 2012.

“There are strong inflows from inward remittances. Exporters also converted dollars to pay salaries and bonuses ahead of the New Year festival,” said a currency dealer who declined to be identified. “A State bank was seen buying dollars at 125.50 to prevent sharp appreciation.”

Most Sri Lankans will celebrate the traditional New Year on 13 and 14 April.

The currency has risen 1.6% this year after falling 10.7% percent n 2012.

The main stock index ended 0.2%, or 11.44 points, firmer at 5,777.38, its highest since 15 February.

Turnover slumped to a two-week low of Rs. 398 million, less than half of this year’s daily average of Rs. 1 billion as many investors were on holiday ahead of the traditional new year.

Foreign investors were net buyers of Rs. 34.8 million worth of shares, extending the year-to-date net foreign inflow to Rs. 5.85 billion ($ 46.58 million). Last year, the bourse saw a net inflow of $ 303 million.