Finance Minister Ravi Karunanayake said on Wednesday that the rupee will be brought to an acceptable level before too long and interest rates, which have been on a rising trend, will be pushed down.
State-run banks, through which the Central Bank directs the market, did not sell dollars or give a reference rate for the currency as in the past, dealers said.
[size=30]Bourse edges down on weaker rupee, policy uncertainty[/size]
Trading volume remained low as investors awaited cues from the policy of the new Government.
The main stock index ended 0.09% or 6.45 points weaker at 7,153.49. Turnover stood at Rs. 474.6 million ($3.4 million), well below this year’s daily average of Rs. 1.13 billion.
“Lack of policy direction is the main problem and investors are waiting to see the budget and how the Government is going to bridge the budget deficit,” said Dimantha Mathew, a Research Manager at First Capital Equities Ltd.
“This trend will continue until a clear statement or some sort of a positive signal comes in.”
Foreign investors sold a net Rs. 86.2 million worth shares on Friday extending the year to date net foreign outflow to Rs. 3.29 billion worth of equities so far this year.