Rupee ends marginally lower on dlr demand from banks

REUTERS: The Sri Lankan rupee ended weaker yesterday as dollar demand from banks and importers surpassed selling of the greenback by exporters, dealers said.
The spot rupee ended at 153.05/10 per dollar, compared with Friday’s close of 152.80/90.

“The demand (for dollar) was there today and a foreign bank was buying dollars, probably to service takeovers,” said a currency dealer requesting anonymity.

Dealers said the rupee was under pressure due to high dollar demand for some equity-related transactions.Last week, diversified conglomerate Hayleys PLC said it purchased 61.73 percent of Singer Sri Lanka PLC for Rs.10.9 billion from Retail Holdings (Sri Lanka) BV a subsidiary of Retail Holdings .

The rupee has been under pressure since January after the Central Bank stopped defending the currency and started buying dollars to build up the country’s depleted foreign currency reserves.

The island nation saw Rs.17 billion of net inflows into equities up to Friday’s close, and Rs.9.4 billion worth inflows into government securities as of September 13, official data showed.