COLOMBO: The Sri Lankan rupee ended firmer on Tuesday as exporter dollar sales outpaced importer demand for the greenback, though broader gains were capped as state banks bought dollars to prevent any sharp gains, dealers said.
The rupee ended at 130.13/14 per dollar after touching 130.17, slightly firmer from Monday's close of 130.15/16. It had hit a two-week low of 130.26 per dollar on Wednesday.
Two state banks, through which the central bank usually intervenes in the market, bought dollars at 130.13, two cents below Monday's rate, to prevent sharp gains and excessive volatility, dealers said.
"There was demand for dollars with the stock-related dollar outflow speculation. But it ended firmer," said a currency dealer.
The island nation's bourse saw a net outflow of 4.52 billion rupees ($34.7 million) on Tuesday, the highest net foreign selling since March 25, 2010.
Yields on five-year bonds were trading at 7.48/58 percent, 13 basis points (bps) higher than on Monday, dealers said.
Comments
Comments are closed.