Sri Lanka rupee forwards steady on cbank moral suasion

Colombo (Reuters) – Sri Lankan rupee forwards traded steady on Thursday with the central bank preventing any likely declines via moral suasion, dealers said, a day after the monetary authority allowed the spot currency to fall by 0.15 percent.

Actively traded three-month forwards were steady at 136.40/70 per dollar at 0531 GMT.

Two-month forwards were unchanged at 135.50/80 per dollar and one-month forwards were steady at 134.70/90, as the central bank prevented the currency from falling sharply.

Central bank officials were not available for comment.

"The spot and forwards up to three months are just indicative and no trading is taking place," a currency dealer said on condition of anonymity.

Another dealer said trading was dull due to the central bank’s moral suasion.

The central bank on Wednesday allowed the spot to fall 20 cents or 0.15 percent, the fifth downward adjustment since April 30 and a move that dealers said reflected lower domestic interest rates and a broadly strong dollar.

The central bank allowed the spot rupee to fall to 133.70 per dollar, a day after it permitted a 20-cent drop to 133.50 on Tuesday, but dealers said the spot did not trade on the day due to moral suasion, preventing deals below 133.70.

The banking regulator has let the spot rupee depreciate 80 cents or 0.6 percent since April 30, Thomson Reuters data showed.

In the stock market, the benchmark index was trading slightly weaker, down 0.05 percent at 7,285.97 as of 0537 GMT. Turnover stood at 797.7 million rupees ($5.97 million). ($1 = 133.7000 Sri Lankan rupees)





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