Sri Lankan rupee rises after bank sells dollars at 133.80
COLOMBO, June 9 (Reuters) – The Sri Lankan rupee traded slightly firmer on Tuesday after a state-run bank sold dollars at 133.80, cutting the spot rupee’s level by 10 cents from the previous session, dealers said.
Increased supply by the bank, through which the central bank usually directs the market, resulted in inactive trade in rupee forwards on Tuesday.
The spot currency traded at 133.80 compared with Monday’s closing level of 133.90.
"The state bank is offering dollars at 133.80. So the forwards were not active," a currency dealer said asking not to be named.
The state-run bank sold dollars at 133.90 during the last five sessions through Monday to hold the rupee steady despite downward pressure due to tepid dollar sales by exporters concerned over the continuing political uncertainty, dealers said.
One-week forwards were at 134.20/30 per dollar compared with Monday’s close, while three-month forwards, which have been actively trading over the last few weeks in the absence of spot, were at 135.75/136.00 per dollar.