Sri Lanka's rupee ended slightly firmer on Thursday due to exporter dollar sales, while a trade union strike at customs dampened importer demand for the greenback. Stocks snapped a five-session winning streak to end lower as foreign investors exited from risky assets.
A strike by Sri Lanka customs officers that left 6,000 containers stranded at the country's main port and put pressure on food prices, had dampened the demand for dollars from importers.
The rupee closed at 177.65/85 per dollar, compared with Wednesday's close of 177.70/178.00, market sources said. Rupee posted a weekly gain of 2.8 percent last week as exporters converted dollars and foreign investors purchased government securities after a statement from the International Monetary Fund (IMF) and government's $1 billion debt repayment boosted confidence. The currency has appreciated 2.8 percent so far this year. Investor confidence in Sri Lanka is stabilising after the country repaid a $1 billion sovereign bond in mid-January, Central Bank of Sri Lanka Governor Indrajit Coomaraswamy said last week.