Sri Lankan rupee down on stock-related dollar demand; shares rise

COLOMBO, Dec 11 (Reuters) – The Sri Lankan rupee was slightly weaker in morning trade on Friday as dollar demand due to stocks-related foreign fund outflow and from importers outpaced selling of the greenback by exporters, dealers said.

Inward dollar remittances before the start of the festival however helped lift some pressure off the rupee, they added.

The rupee was at 143.25/35 per dollar at 0613 GMT compared with Thursday’s close of 143.20/30.

"Some demand is building up, some foreign banks are buying on stock-related activities," said a currency dealer, asking not to be named.

Dealers expect the currency to stay around 143.15 to 143.30.

The central bank conducted a repo auction on Tuesday, the second straight day since Feb. 27, to absorb excess rupee liquidity and curb pressure on the exchange rate.

Sri Lanka’s main stock index was 0.18 percent higher at 6,836.30 at 0620 GMT. Turnover stood at 295 million rupees ($2.06 million).

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