Sri Lankan rupee forwards ended weaker on Monday as importer dollar demand outpaced inflows from remittances and exporter sales, dealers said. Actively traded one-week forwards ended at 133.60/70 per dollar, sliding from Friday's close of 133.52/57, while two-week forwards closed at 133.78/85, down from the previous close of 133.60/70.
"Importer (dollar) demand was more than remittances. Moral suasion was there at 133.60 (rupees) for one-week forwards," a currency dealer said on condition of anonymity.
"We will see the same trend until mid-April and then we expect the rise in imports to put pressure on the currency unless there are strong inflows."
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 through moral suasion prevented the spot rupee from dropping below 132.90/133.20, a limit it set in February.
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. A weekly t-bill auction is scheduled for Tuesday.
Yields on t-bills fell between 17 and 19 basis points at a weekly auction on Wednesday, after falling between 31 and 44 basis points the previous week.
Comments
Comments are closed.