CB cuts banks’ net dollar opening positions

in the early trade, but later the rupee fell due to importer dollar demand,” said a currency trader on condition of anonymity. The Central Nank, after spending more than $2.7 billion in foreign exchange reserves in the second half of 2011 to fend off depreciation, Reuters (Colombo)— The Central Bank cut commercial banks’ net dollar opening positions to a third to square off banks’ deficit and surplus, A.A.M. Thasim, additional director at the central bank’s inter national operations department, told Reuters. “Some banks with surplus dollars unwound their position

tecting pulled engaged rupee eign But The last investors from a it Central month a handful specific has in falling moral intervened changed Bank do exchange of further. not regulatory suasion wants cash its rate. once policy to in to ensure levers the keep already, of more pro- and for- the than denominated Wednesday A Reuters $2 billion forecast securities. monthly they the have forex rupee placed poll to fall in on rupee- as last far as Feb. 128.50 The 9, rupee when by the has the end fallen Central of August. 5.7 Bank percent stopped since defending The stock it. market meanwhile closed down, ing economic hindered growth, by as concerns rising interest over slow- rates and broadly flat December quarter profits.

The cumulative from 217 companies December released quarter so far is flat year-on-year, according to data from John Keells Stockbrokers. “Interest rates are going up and companies are also feeling it,” Harsha Fernando, head of SC Securities, told Reuters.

“I am very much concerned about the interest rates, because it will not encourage people to come to the market, it will affect companies’ performance.”

Foreign investors bought shares worth 95.6 million Sri Lanka rupees ($782,300), extending the offshore net foreign inflow to 2.31 billion rupees so far this year, after a net outflow of 19.1 billion last year.

The day’s turnover was 403.2 million rupees and the volume was 15 million, the lowest levels since early January.

The oil palms sector led the way down with 14.7 percent loss in Selinsing PLC.

The Colombo bourse is one of the worst performers this year among Asian markets, with a 9.96 percent loss while the majority have had positive returns.