The Sri Lankan rupee ended firmer on Thursday as banks' dollar sales surpassed mild importer greenback demand ahead of the central bank's monetary policy rate announcement later in the day, dealers said. The central bank is expected to keep its key interest rates steady for a fifth straight month on Thursday, a Reuters poll showed, despite signs that inflation and private sector credit growth are picking up. However, the possibility of a surprise rate hike is not ruled out. One-week rupee forwards, which have been acting as a proxy for the spot rupee, ended at 146.10/25 per dollar, slightly firmer from Wednesday's close of 146.25/40.
Spot-next, which are rupee forwards settled three days after the spot rupee settlement, ended at 145.95/10 per dollar compared with Wednesday's close of 146.10/30. The spot rupee is tightly managed by the central bank, and market participants use the forward market levels for guidance on the currency.
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