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RTRS:Sri Lanka rupee firmer on inward remittances; stocks slip
 
Nov 11 (Reuters) - The Sri Lankan rupee edged up on Monday from its more than one-month closing low as inward remittances outpaced dollar-buying by banks for year-end seasonal importer demand, dealers said.

The spot rupee was quoted at 131.10/20 per dollar at 0536 GMT, firmer from Friday's close of 131.15/22, which was the lowest close since Oct. 4.

Though moral suasion or intervention by the central bank was not seen, dealers said banks did not trade spot above 131.10 and traded three-day forwards instead of the spot rupee.

The three-day forwards were traded at 131.15/18 rupees a dollar, firmer from Friday's close of 131.17/22.

Dealers expect the currency to be weighed down by continued importer dollar demand ahead of the December festive season.

However, the pressure on the rupee should start to ease off on offshore remittances by the middle of next month, they said.

Central Bank Governor Ajith Nivard Cabraal on Nov. 1 said the rupee could come under pressure due to importer dollar demand ahead of the December festival season, but the market could manage the demand "itself without much intervention".

The rupee hit a record low of 135.20 on Aug. 28, but has managed to stem further losses and is up 3.1 percent since then.

At 0546 GMT, Sri Lanka's main stock index was down 0.03 percent or 2.13 points at 5,853.21, hovering around its lowest level since Oct. 7.

Stockbrokers said sluggish growth in the September quarter earnings has hit sentiment. Bellwether stocks such as conglomerate John Keells Holdings and top mobile phone operator Dialog Axiata posted a 15 percent and 68 percent fall respectively in their quarterly earnings.

A raft of listed firms are expected to release their quarterly earnings during this month. (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)
Source