COLOMBO, Sept 23: The Sri Lankan rupee traded a tad weaker today due to importer dollar demand, dealers said, while the main stock index slid in the early trade.
The rupee spot traded at 132.15/20 by 0529 GMT, compared with Friday’s close of 132.12/18.
‘Being a Monday, naturally the importer demand is high,’ a currency dealer said.
Many dealers expect the rupee to be steady around the 132.25 level due to inflows from the National Savings Bank’s $750 million 5-year bond issue.
Some dealers noted, however, that the rupee has a tendency to depreciate over the long term without steady dollar inflows from exports and remittances.
The currency hit a record low of 135.20 on Aug. 28, but has recovered since then. It has fallen 3.6 percent this year, after depreciating about 10 percent in 2012.
The rupee has been falling since early July when foreign investors started pulling out of local bonds as U.S. Treasury yields rose in expectation of the U.S. Federal Reserve cutting back its stimulus programme.
Foreign holdings in Sri Lankan government securities hit a more than five-month low last week after falling for three straight weeks. They have fallen 4.74 percent in the three weeks ended Sept. 11, to 479.59 billion rupees ($3.63 billion), the lowest since April 3, central bank data showed.
The central bank did not publish foreign holdings data as of Sept. 18, which is supposed to be provided with the latest weekly indicators.
Central bank Governor Ajith Nivard Cabraal said earlier this month that foreign holdings in government securities are still above the maximum 12.5 percent of the total outstanding T-bills and T-bonds that foreigners are allowed to hold.
Sri Lanka’s main stock index was traded 0.07 percent weaker at 0541 GMT. It had hit a more than eight-month low on Sept. 9.
(AGENCIES)
Follow our WhatsApp channel