COLOMBO: The Sri Lankan rupee edged lower on Wednesday due to importer dollar demand, while selling of the greenback by a private bank prevented a sharp fall, dealers said.
The private bank might have sold dollars on behalf of the central bank, some dealers said. Officials at the central bank were not available for comment on the matter.
The rupee ended at 143.95/144.10 per dollar, slightly down from Tuesday's close of 143.90/144.00.
"The rupee is under pressure due to the (importer) demand," said a currency dealer, asking not to be named.
The dollar selling by the private bank, likely to defend the local currency, has prevented a fall in the last few days, dealers said.
The market, however, expects pressure on the rupee to ease due to a 150-basis-points increase in the SRR of commercial banks from Jan. 16 and on expected inflows from foreign deposits.
The yield on one-year t-bills rose 32 basis points to hover at more than two-year high of 7.80 percent at the weekly auction on Wednesday. Analysts expect market interest rates also to rise in tandem with t-bill yields.
Commercial banks parked 45.059 billion rupees ($313 million) of surplus liquidity on Wednesday using the central bank's deposit facility at 6 percent, official data showed.
Comments
Comments are closed.