Sri Lankan rupee marginally up on dollar sales
COLOMBO, Jan 10 (Reuters) – The Sri Lankan rupee traded slightly firmer on Tuesday as foreign banks sold dollars, but dealers expect the strength to be short-lived on lingering concerns after the Central Bank last week changed its intervention policy in the currency market.
Rupee forwards were active, with two-week forwards trading at 150.45/55 per dollar at 0632 GMT, slightly firmer from Monday’s close of 150.60/75.
"We see some foreign banks selling dollars, probably from foreign investors, to buy local bonds," a currency dealer said, asking not to be named. Another dealer said there were some project-related foreign inflows to a foreign bank.
Last week, the Central Bank’s moral suasion prevented a further decline even as the monetary authority signalled a change in its intervention policy.
Officials from the Central Bank were not available for comments.