Sri Lankan rupee trades higher on dollar selling by bank; stocks rise
COLOMBO, Oct 7 (Reuters) – The Sri Lankan rupee rose on Wednesday as a private bank sold dollars amid mild demand for the greenback from importers, dealers said.
The rupee was trading at 140.55/70 per dollar at 0457 GMT, compared with Tuesday’s close of 141.05/141.10.
Dealers said the two state-run banks through which the central bank directs the market were not seen selling dollars, but a local private bank sold the U.S. currency, which helped the rupee to trade higher.
"A private bank started selling (dollars) today. Not sure whether it’s exporter (dollar) sales but that eased the pressure on the rupee," said a dealer who declined to be identified.
The rupee hit a record low of 141.40 per dollar on Sept. 28, but has recovered over the past few days after a state-run bank sold dollars.
Japanese Prime Minister Shinzo Abe pledged about 45.4 billion yen ($377 million) in infrastructure aid to Sri Lanka on Tuesday in a meeting with his counterpart, Ranil Wickremesinghe.
Sri Lanka’s main stock index was up 0.06 percent at 7,090.38 at 0535 GMT. Turnover stood at 175.7 million rupees ($1.25 million). (Colombo/October 07 2015)