COLOMBO: The Sri Lankan rupee ended slightly firmer on Wednesday due to dollar inflows from remittances and greenback sales by exporters after the dollar weakened overnight against major currencies globally, dealers said.
The dollar could recover only a little ground on Wednesday against key currencies, after recording its worst start to the year in three decades on concerns the United States was poised to ditch a two-decade old "strong dollar" policy.
Dealers said foreign outflows from government securities and importer demand for the greenback continued to pressure the rupee. The Sri Lankan central bank revised the spot rupee reference rate to a record-low of 150.50 from 150.25 on Tuesday.
"The rupee ended firmer today due to some inward remittances following the salary season and some exporter conversions due to strengthening of euro and other currencies (against dollar)," a currency dealer said, requesting anonymity.
Rupee forwards were active, with two-week forwards trading steady at 151.00/10 per dollar, dealers said. The rupee will also face depreciation pressure due to seasonal importer dollar demand, they said.
The rupee has been under pressure due to rising imports and net selling of government securities by foreign investors, while the central bank has said defending the currency was not sensible.
Foreign investors net sold 21.1 billion rupees ($140.6 million) worth of government securities in the three weeks to Jan. 25, according to latest central bank data.
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