Rupee edges down on importer dlr demand

REUTERS: The Sri Lankan rupee closed slightly weaker yesterday in dull trade as importer dollar buying outpaced mild exporter greenback conversions, dealers said.

The spot rupee, which traded at 153.60 per dollar earlier in the session, closed at 153.55/60, compared with Friday’s close of 153.45/55. Dealers said they expect the rupee to weaken by around 4-4.5 percent during the year.

The rupee has slipped 2.6 percent so far in the year.

The currency came under pressure early this month due to dollar demand from state-run Ceylon Petroleum Corporation (CPC), which stocked up crude oil ahead of an expected fuel price hike, dealers said.

The currency is expected to weaken on generally higher importer demand ahead of the national budget next month, dealers said.

The island nation has seen Rs.19.8 billion of net inflows into equities this year as of yesterday’s close and Rs.41.1 billion into government securities as of October 25, official data showed.