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Sri Lanka rupee trades at new low, foreign names sell bonds

Sept 07, 2007 (LBO) - The Sri Lanka rupee traded at a new low of 113.
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36 against the greenback as a foreign name sold rupee bonds Thursday, but closed at 113.
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27/32, dealers said. On Wednesday the rupee closed at 113.
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10/20 against the spot dollar.

A state name intervened at 113.

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36 in intra day trading driving the rupee up to 113.28 against the dollar.

In the forward markets the six month dollar was traded down from a high of 121.

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15 to around 120.99 indicating that some exporters may be selling forward.
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The markets were liquids and exporters were later seen selling spot, dealers said.

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However a foreign name was later seen buying in the spot markets, edging the spot dollar up.

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In the debt markets around 300 million worth of a bond maturing in 2012 (15.4.12) was sold by a foreign name at 17.

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15 percent, dealers said.

The bond was down from previous sales around 17.

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00/05.

Sri Lanka government has been rejecting bond auctions leaving long term money loose in the markets, making them a sitting duck for foreign investors who want to sell out and needlessly putting pressure on the currency, analysts say.

Foreign investors who bought rupee bonds earlier in the year have been trying to exit, as their portfolios took hits worldwide.

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Corrected highest traded

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