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Sri Lankan rupee steady in dull trade; more weakening expected

COLOMBO, Dec 28 (Reuters) – The Sri Lankan rupee was steady and trading near its record low on Monday amid thin trade as many investors stayed away due to year-end holidays, currency dealers said.

Some dealers expect the rupee to weaken further in the coming months.

The rupee was at 143.70/80 per dollar, near its record low of 143.80 hit on Wednesday. It had closed at 143.70/75 on Wednesday. Markets were closed on Thursday and Friday for holidays.

"It is a razor thin market as market participants are on a long holiday," a currency dealer said asking not to be named.

"We still believe the rupee will depreciate further in 2016 if the central bank does not tighten the monetary policy."

The rupee has fallen 8.7 percent so far in the year.

Dealers expect some direction on the interest rates from the central bank’s December monetary policy announcement scheduled for Dec. 30 at 7:30 p.m. (1400 GMT).

Sri Lanka’s main stock index was down 0.12 percent by 0723 GMT.

Turnover stood at 276.4 million rupees ($1.92 million). (Colombo/December 28, 2015)
 

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