The Sri Lankan rupee ended firmer on Monday as exporter dollar sales surpassed early greenback demand from importers on worries capital outflows would increase as incoming U.S. President Donald Trump’s policies were seen guiding U.S. rates higher and strengthening the dollar.
Foreign investors might pull out of emerging markets, including Sri Lanka, if the Fed raises interest rates next month, dealers said.
The International Monetary Fund (IMF) released a second tranche of loans worth $162.6 million and said Sri Lanka’s macroeconomic and financial conditions have begun to stabilise.
Pressure on the rupee is expected to ease on the IMF loan, with investors waiting to see what action the central bank would take after the loan money flows in, dealers said.
-reuters
-Agencies
