Rupee forwards end up on exporter dlr sales, spot steady

4 June 2015 06:25 am Views - 1071

REUTERS: Sri Lankan rupee forwards ended firmer yesterday as exporters sold dollars amid expectations of a further rise in the local currency while the spot currency was steady due to selling of the greenback by state-run banks, dealers said.

Three-month forwards, which were actively traded for the last few weeks in the absence of spot, closed at 135.90/136.30, firmer from Monday’s close of 136.80/137.10. Both stock and currency markets were closed for a Buddhist religious holiday on Tuesday.

The spot rupee closed steady at 133.90 per dollar as a state-run bank, through which the Central Bank usually directs the market, sold dollars at 133.90, dealers said. Dealers said the pressure on the rupee might ease when expected inflows come in.

“At the moment, the perception on the rupee fall has reversed and the market expects it to appreciate in the short run. But it depends on dollar inflows in the future,” a currency dealer said asking not to be named.

On Monday, the spot currency started to trade after nearly six months after the island nation raised nearly US $ 1 billion from bond sales the previous week.