Tag Archive | "SRI LANKA RUPEE"

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SL Rupee steady – inflows expected to ease pressure

Posted on 10 November 2014 by TSL

COLOMBO: The Sri Lankan rupee traded steady on Monday (Nov.10) as dollar inflows into some government securities offset importer demand for the greenback, while expected inflows in bonds eased the pressure though moral suasion by the central bank prevented a fall, dealers said.

Traders said the local currency may face pressure as imports continue to rise in a stable exchange rate regime.

The spot currency was flat at 130.90/131.00 per dollar at 0629 GMT. Dealers were reluctant to trade the spot below 130.90 due to moral suasion by the central bank.

Three-day forwards, or spot next, which were actively traded because of moral suasion on the spot rupee, were steady at 131.00/131.10 per dollar, compared with Friday's close. Dealers said the central bank capped the spot next at 131.00.

"The rupee is trading flat on the talk of bond (dollar) inflows, but we haven't seen it going through the market yet," a dealer said on condition of anonymity. "The spot is not allowed to trade below 130.90 and the spot next below 131.00."

Central bank officials were not available for comment.

The market expects the local currency to remain weak due to rising seasonal imports at least through November and only start to inch up in December on remittances, dealers said.

Overseas investors sold a net 39.12 billion rupees ($298.97 million) worth of government securities in the seven weeks through Nov. 5, data from the central bank showed.

Sri Lanka's stock index was up 0.09 percent, or 6.99 points, at 7,423.14 as of 0634 GMT.

Turnover was 1.18 billion Sri Lankan rupees ($9.02 million), with 38.9 million shares changing hands.

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Sri Lanka rupee steady near 3-week low; seen facing downward pressure

Posted on 22 July 2014 by TSL

 

 

imageCOLOMBO: The Sri Lankan rupee traded steady near its three-week low on Tuesday in dull trade, but dealers said the currency could face some downward pressure during the week due to import bills.

The rupee was at 130.29/32 per dollar at 0632 GMT, little changed from Monday's close of 130.30/32. Early last week, it hit a more than one-year closing high.

"We do not see much pressure on the currency. But there are some heavy import bills expected, probably from oil imports," a currency dealer said on condition of anonymity.

"So, we expect the rupee to be under downward pressure later today or during this week."

Dealers, however, said they did not see any impact on the rupee due to $307 million in outflows from government securities a week earlier.

Offshore investors sold 40 billion rupees ($307 million) worth of government securities last week, official data showed on Monday, but the central bank said this would not affect the rupee.

Dealers said though the $307 million has been shown as outflows, foreign investors have not taken the funds out of the country.

A currency dealer at a foreign bank, which usually deals with foreign trading in government securities, on Monday said the country could also see similar amount of inflows in the near future. He did not elaborate.

The central bank has said the rupee would have appreciated to around 125 rupees per dollar had it not intervened by absorbing $750 million from the domestic foreign exchange market this year through July 14.

Dealers had been expecting the rupee to appreciate due to lack of strong growth in imports and private sector credit, despite lower interest rates.

Yields in treasury bills edged down further at a weekly auction on Wednesday.

Sri Lanka's main stock index was down 0.16 percent, or 10.59 points, at 6,745.93 at 0646 GMT, compared with the 33-month high hit on Monday. Turnover was 801.4 million rupees ($6.15 million) with 14.4 million shares changing hands.

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Sri Lanka rupee hits over 1-year high; stocks at 33-month peak

Posted on 15 July 2014 by TSL

 

 

imageCOLOMBO: The Sri Lankan rupee climbed to its highest in more than a year on Tuesday, as inflows from remittances and exporter dollar sales surpassed dollar demand from importers.

State banks also lowered the dollar buying rate by two cents to curbed a sharp appreciation in the local currency.

The rupee traded at 130.18/19 per dollar at 0530 GMT, its highest close since June 28, 2013 and firmer than Monday's close of 130.20/22.

An official at the central bank told Reuters that it was buying from the market to curb excess volatility as there had been continuous inflows during the last few weeks. "It's the market sentiment the market sentiment as you are aware is drifting down, so that is also reflected in our accumulation from the market," an official at the central bank's international operations department told Reuters.

"If we have not intervened, the rupee would have ended at 125 (levels)." Dealers said the two state banks which the central bank directs to set the rate of the rupee bought dollars at 130.18 per dollar, two cents below Monday's rate.

The central bank had absorbed $750 million from the domestic foreign exchange market by July 14, the official said.

The central bank kept policy rates steady at multi-year lows for a sixth straight month on Monday, as expected, despite private sector credit growth slowing to a 4-1/2-year low.

The fuel import bill, which accounts for about 20 percent of monthly imports, is also on the decline as the country has been shifting to alternative power sources such as coal and hydro power, the dealers said.

The cost of fuel imports fell 35.4 percent in May to $208.9 million, compared with the same month a year earlier.

Sri Lanka's trade deficit narrowed by 47.9 percent to $393.4 million in May from $754.9 million a year earlier, mainly due to lower imports, central bank data showed on Monday.

Sri Lanka's main stock index was up 0.29 percent, or 19.69 points, at 6,718.72 by 0536 GMT — its highest since Oct. 10, 2011. Turnover was 1.08 billion Sri Lankan rupees ($8.30 million), with 26.2 million shares changing hands.

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Sri Lanka rupee falls on importer dollar demand

Posted on 20 January 2014 by TSL

Jan 20 (Reuters) – The Sri Lankan rupee ended a tad weaker on Monday due to importer dollar demand, while dealers said a government decision to keep a $1 billion inflow from a recent sovereign bond sale with the central bank’s reserves could hurt the currency. The spot rupee closed at 130.75/77 per dollar, tad weaker from Friday’s close of 130.73/75.

Swarna Gunaratne, the head of central bank’s Economic Research Department said the government has kept the inflows in the central bank’s reserves after it came into the country last week.

“It will be added into the foreign reserves and used later,” she told Reuters after market-hours on Monday.

The central bank said on Jan. 2 it expected the rupee to strengthen in the medium term and any direct intervention in the foreign exchange market would be minimum.

The rupee has gained about 3.4 percent since it hit a record low of 135.20 on Aug. 28. It lost 2.5 percent in 2013. (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)

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Sri Lanka Rupee up 0.4 per cent as exporters sell dollars

Posted on 11 September 2013 by TSL

The rupee spot, which had been inactive for several weeks, was actively traded and ended at 132.25/35 per dollar, dealers said, from Tuesday's close of 132.80.

"There was selling pressure on the dollar, but we are closely monitoring the global situation," a currency dealer said.

Dealers said the pressure on the rupee has eased and spot trading started again after some time.

A modest rebound in the Indian rupee , also aided sentiment.

The Indian rupee extended gains to a fifth session on Wednesday as easing geopolitical tensions in Syria led to cooling of global crude oil prices, which will help keep the country's import bill in check.

The Sri Lankan rupee hit a record low of 135.20 to the dollar on Aug. 28, before recovering.

The Lankan rupee has been falling since early July, with foreign investors pulling out of local bonds as U.S. Treasury yields rose on expectations the Federal Reserve would soon begin to taper its big bond buying programme.

The rupee has fallen nearly 3.6 percent this year, after depreciating around 10 percent in 2012. (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

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