The Sri Lankan rupee declined for a fifth straight session on Tuesday as offshore investors sold government securities amid concerns over further depreciation in the local currency, dealers said. Dollar demand from importers and foreign banks also weighed on the rupee, they said. Rupee forwards were active with one-month forwards closing at 153.20/35 per dollar, weaker than Monday's close of 152.95/153.15.
Two-week forwards ended at 152.70/90 per dollar, weaker than Monday's close of 151.70/75 per dollar. Foreign investors net sold 49.1 billion rupees ($325.70 million) worth of government securities in the seven weeks to February 15, more than the total net foreign outflow of $324.3 million in 2016, according to the latest central bank and government data. "There was no supply (of dollars) in the market and there were outflows with foreigners selling government rupee bonds," said a currency dealer, requesting not to be named.
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