Sri Lanka rupee stronger in forward markets

COLOMBO (EconomyNext) – Sri Lanka’s rupee strengthened to 137.90/138.10 to the US dollar in the three month forward market Thursday recovering from a record low close 138.50/139.00 rupees yesterday amid expectations of a sovereign bond sale.

Foreign investors were also seen picking up rupee bonds, in morning trade, Thursday, dealers said.

Sri Lanka is expected to sell a 10-year sovereign bond prices around 6.3 percent, and the sales may be concluded today, Bloomberg Newswires said, citing un-named sources.

Citi, Deutsche Bank, HSBC and Standard Chartered are issue managers. Sri Lanka raised a billion US dollar 5-year bond in January 2014 for 6.0 percent and another 500 million US dollars in April 2014 for 5.125 percent.

Sri Lanka’s rupee had been under pressure from September amid higher credit state and private growth. Central Bank controls on the spot market trading had further undermined confidence in the currency, analysts say.

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