Rupee edges...

The spot rupee is usually managed by the Central Bank and market participants use the forward market levels for guidance on the currency.

“Importer demand was there. But a state bank started selling when the rupee hit 145.95 and it sold until 145.70,” said a currency dealer, asking not to be named.

“It was not clear if the state bank sold on behalf of the Central Bank.”dealers said seasonal importer demand would pick up from mid-october.

The Central Bank has largely not intervened to defend the rupee ever since a dual-tenure sovereign bond issue raised US $1.5 billion in July.

The benchmark Colombo stock index ended 0.31 percent weaker at 6,472.47, its lowest close since Aug. 1. It fell 0.34 percent for the week, its fourth straight weekly loss. Both the stock and foreign exchange markets will be closed today for a holiday.

“It was a very dull day as investors are waiting for directions. But the VAT decision was a bit of a concern for investors,” said Yohan Samarakkody, head of research at SC Securities (Pvt) Ltd.

Turnover stood at Rs.301.2 million ($2.07 million), less than half of this year’s daily average of Rs.744.6 million.

Foreign investors were net sellers of Rs.19.9 million worth of shares yesterday, extending the net foreign outflow so far this year to Rs.2.31 billion worth of equities.

Shares of Ceylon Tobacco Company Plc dropped 1.2 percent, while conglomerate John Keells Holdings Plc dropped 0.5 percent. Sri Lanka Telecom Plc fell 1.6 percent, while Dialog Axiata Plc declined 0.9 percent.