Thursday, 26 March 2015 20:35
COLOMBO: Sri Lankan rupee forwards edged up on Thursday, with one-week forwards rising for the first time in four weeks on dollar inflows from remittances, foreign bond buying and exporters sales, dealers said.
Actively traded one-week forwards, which edged up for the first time since Feb. 27, ended 133.52/57 firmer from Wednesday’s close of 133.60/75.
Two-week rupee forwards ended steady at 133.70/75 per dollar compared with Wednesday’s close.
“Dollar sales by banks for exporters and inward remittances strengthened the rupee. There were bond inflows also,” said a currency dealer on condition of anonymity, adding that there was no intervention from the central bank.
Dealers said the downward pressure on the currency was easing with a pick-up in seasonal inward remittances ahead of the Sinhala-Tamil New Year on April 14.
They expect seasonal inward remittances to continue until the first week of April.
The central bank prevented a fall in the spot rupee at 132.90/133.20 within the limits set by it.
Central bank officials were not available for comment.
Dealers said the market may wait for cues on interest rates after t-bill yields fell for two straight weeks.
Yields on t-bills fell between 17 and 19 basis points at a weekly auction on Wednesday, after they fell between 31 and 44 basis points last week.
Copyright Reuters, 2015
