Sri Lankan rupee edged higher on Wednesday after four straight sessions of losses. Foreign investors sold a net 165.4 million rupees worth of shares on Wednesday, extending the year to date net foreign outflow to 4.4 billion rupees worth of equities so far this year.
The rupee closed slightly firmer on dollar selling by exporters and banks. The rupee gained 0.3% to close at 176.20/40 per dollar, compared with Tuesday's close of 176.75/90, market sources said. Analysts expect the currency to weaken as money flows out of stocks and government securities.
The rupee gained 0.6% last week and is up 3.6% for the year. Exporters had converted dollars as investor confidence stabilised after a $1 billion sovereign bond was repaid in mid-January. The rupee dropped 16% in 2018 and was one of the worst-performing currencies in Asia. Foreign investors sold a net 10.8 billion rupees worth of government securities in the week ended May 8, extending net foreign outflow to 20.8 billion rupees so far this year, central bank data showed.
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