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Sri Lanka rupee retreats from near 1-week high on importer dollar demand

Source : REUTERS
Last Updated: Fri, Nov 01, 2013 12:40 hrs

COLOMBO, Nov 1 (Reuters) - The Sri Lankan rupee ended weaker on Friday, after hitting a near one-week high earlier in the day, on dollar buying by state-run banks, while year-end seasonal importer demand also weighed on the rupee.

The spot rupee closed at 131.00/05 per dollar, weaker from Thursday's close of 130.85/92, its highest close since Oct. 25.

"Two state banks bought dollars to cover oil import bills," said a currency dealer.

Central Bank Governor Ajith Nivard Cabraal on Friday said the rupee could come under pressure due to importer dollar demand, for consumer-related goods ahead of the December festival season, but the market could manage the demand "itself without much intervention".

The currency, which appreciated 0.4 percent last week on foreign buying in the rights issue of Sri Lanka's biggest conglomerate John Keells Holdings Plc, hit a near four-month closing high on Oct. 24.

The rupee hit a record low of 135.20 on Aug. 28, but has managed to stem further losses and is up 3.19 percent since then. (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)



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