(UDHAYAM, COLOMBO) – The Rupee ended weaker on Tuesday (20) as Dollar demand from importers weighed on the spot currency, which traded for a second straight session after six-weeks.
The spot Rupee started trading on Monday for the first time since May 05 when the Central Bank fixed the spot reference rate at 152.50.
The spot Rupee ended at 153.30/40 per Dollar, weaker from Monday’s close of 153.18/23.
“There was some (Dollar) buying, but not large volumes. There was general importer demand,” said a currency dealer, requesting anonymity.
Dealers said they expect seasonal demand for Dollars to pick up from August.
The Central Bank has set a target of $ 1.2 billion in direct market purchases of Dollars to boost the island nation’s reserves this year, mainly to achieve a target set by the International Monetary Fund (IMF) in return for a three-year $ 1.5 billion loan.
Foreign investors bought a net Rs. 7.93 billion ($ 51.8 million) worth of Government securities in the week ended 14 June. They have sold a net Rs. 32.03 billion worth of Government bonds so far this year.
Courtesy: Reuters News Agency
