Sri Lanka rupee edges up

The Sri Lankan rupee ended slightly firmer on Friday with late dollar sales by exporters and foreign banks outpacing demand for the greenback from importers, dealers said. The spot rupee closed at 153.65/70 per dollar, from Thursday's close of 153.70/85. "There were dollar sales by exporters and foreign banks in the latter part of trading," a currency dealer said, asking not to be named. "We expect a gradual depreciation in the currency with the central bank buying dollars continuously."
Central Bank Governor Indrajith Coomaraswamy said on Monday the rupee was still "over-valued" and that the central bank was still buying dollars to avoid any appreciation. The central bank is compelled to buy dollars from the market to meet a reserves target set by the IMF under a $1.5 billion, three-year loan programme. Coomaraswamy told Reuters that the central bank had bought dollars in the range of $750 million to $800 million from the market, out of the $1.2 billion it had planned to purchase in the 10 months from March this year. Analysts expect the currency to depreciate 4 percent this year. It has already fallen 2.6 percent so far in 2017.