COLOMBO: Sri Lankan rupee forwards traded slightly firmer on Friday as dollar selling by banks surpassed the mild demand for the greenback from importers, dealers said.
Rupee forwards have been active since Jan. 27 due to little trading in spot currency with banks reluctant to trade below the 144.00 level amid moral suasion by the central bank. Officials from the central bank were not available for comment.
Dealers said one-week rupee forwards, which act as a proxy for spot, stood at 144.20/30 per dollar at 0653 GMT, firmer from Wednesday's close of 144.25/30.
Markets were closed on Thursday for the independence day holiday.
"The rupee is trading firmer on bank dollar sales.
There are some inward remittances too and the import demand was mild because of the short week," said a currency dealer, asking not to be named.
The rupee is under pressure despite a 150-basis-point increase in commercial banks' statutory reserve ratio from Jan. 16. The central bank kept its key policy interest rates unchanged last week.
Sri Lanka's main stock index was 0.06 percent firmer at 6,406.58 at 0655 GMT.
Turnover stood at 180.9 million Sri Lankan rupees ($1.26 million).
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