Sri Lanka rupee firmer on dollar inflows; stocks extend losses

Reuters – The Sri Lankan rupee ended firmer on Monday due to dollar inflows from foreign remittances ahead of the traditional new year later this week, sources said, while stocks extended losses into a second session. ** After the markets closed on Monday, Sri Lanka’s central bank left its key interest rates unchanged, a widely expected move to boost an economy struggling in the wake of a political crisis. ** The currency gained 0.2 percent to end at 174.60/70 to the dollar, compared with Friday’s close of 174.90/175.00. ** The island nation’s currency gained 0.26 percent last week, and 4.6 percent so far this year, as exporters converted dollars and foreign investors purchased government securities amid stabilising investor confidence after the country repaid a $1 billion sovereign bond in mid-January. ** Dealers expect the pressure on the rupee to ease with more inward remittances ahead of the Sinhala-Hindu New Year on April 14. ** Sri Lanka was plunged into political turmoil in October when President Maithripala Sirisena abruptly removed Prime Minister Ranil Wickremesinghe and then dissolved parliament. A court later ruled the move was unconstitutional, and Wickremesinghe was reinstalled as premier. ** Investor sentiment took a big hit as a result of the 51-day political crisis, leading to credit rating downgrades and an outflow of foreign funds from government securities. ** The rupee dropped 16 percent in 2018, and was one of the worst-performing currencies in Asia due to heavy foreign outflows. ** Foreign investors sold a net 1.9 billion rupees worth of government securities in the week ended April 3, the first weekly fall in five weeks, but foreign investors were net buyers of 1.6 billion rupees so far this year, the latest central bank data showed. ** The Colombo Stock Exchange index fell for a second straight session on Monday to end 0.46 percent weaker at 5,595.46. The index further slipped from its highest close since March 11, hit on Thursday. ** The benchmark stock index rose 1.2 percent last week, recording its second consecutive weekly gain in nine. The index has declined 7.55 percent so far this year. ** Turnover came in at 690.4 million rupees ($3.96 million), more than this year’s daily average of 633.2 million rupees. Last year’s daily average came in at 834 million rupees. ** Foreign investors sold a net 34.3 million rupees worth of shares on Monday, extending the year-to-date net foreign outflow to 5.8 billion rupees worth of equities. ** The latest budget aims to increase government spending by 13 percent in 2019, during which the presidential election must be held, while it has set an ambitious goal to reduce a large fiscal deficit.

The post Sri Lanka rupee firmer on dollar inflows; stocks extend losses appeared first on Adaderana Biz English | Sri Lanka Business News.

adaderana business
Share on Google Plus

About Unknown

Sri Lanka's most important news collector. We publish news from the trusted websites in the world.


Post a Comment