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COLOMBO: The Sri Lankan rupee closed steady on Thursday in dull trade as exporter dollar sales and inward remittances offset importer demand for the US currency in the absence of dollar buying by state-run banks, dealers said.

The spot rupee ended steady at 152.90/95 per dollar.

"We didn't see state banks in the market. That is the reason the rupee did not see any pressure to depreciate," said a currency dealer, requesting anonymity.

The island nation has seen 27.9 billion rupees ($182.47 million) of net inflow into equities up to Thursday's close and 2.56 billion rupees worth inflows into government securities up to August 16, official data showed.

The rupee has however been under pressure since January after the central bank stopped defending the currency and started buying dollars to build up the country's depleted foreign currency reserves.

 

Copyright Reuters, 2017

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