Rupee little changed; downward pressure persists

21 October 2015 06:30 pm Views - 1201

REUTERS: The Sri Lankan rupee traded little changed yesterday as dollar inflows into a foreign bank through bond buying by foreigners offset importer dollar demand, dealers said.
The rupee was at 141.00/10 per dollar at 0657 GMT compared with Tuesday’s close of 141.00/05.
“Import demand is there, but nobody is trading above 141.00 as they feel that’s the Central Bank’s desired level,” said a currency dealer who asked not to be named.
“There are no sellers but everybody is awaiting to see if the foreign bank, which is getting some inflows, is going to sell the dollars,” the dealer said.
Dealers said the rupee is under pressure on import demand and heavy government spending.
The rupee hit a record low of 141.40 per dollar on September 28, but recovered slightly after a state-run bank sold dollars.
Sri Lanka’s main stock index was 0.13 percent, or 9.21 points, firmer at 7,050.47 at 0702 GMT. Turnover was Rs.703.6 million.