Sri Lanka rupee slightly weaker in forex markets; liquidity short

ECONOMYENEXT – Sri Lanka’s rupee was quoted at 15.85/95 against the US dollar in the spot forex markets Monday marginally weaker than 145.70/80 last Thursday, while a liquidity short expanded dealers said.

One week forwards were quoted at 146.12/22 to the US dollar.

There was strong demand for dollars with import for parliamentarian’s vehicles last week, according to some market participants, which weakened the rupee last week.

In money markets, 50 billion rupees were injected at 8.49 percent by the central bank through a reverse repo auction Monday, up from 31 billion rupees last Thursday indicating a large outflow of dollars over the past week.

Dollar outflows could be from a foreign debt repayments (with dollars sold from the foreign reserves) or a maturing swap with the central bank. (Colombo/Sept19/2016)

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