The Sri Lanka rupee forwards ended weaker on Friday due to importer dollar demand, while the central bank's moral suasion prevented a further fall in the local currency, dealers said. The central bank governor said on Friday the rupee currency was in an appreciation trend and the monetary authority would manage any volatility through intervention.
However, dealers said the local currency was under downward pressure as imports continue to rise in a stable exchange rate regime and low interest rate environment. The spot currency ended at 130.95/131.10 per dollar compared with Thursday's close of 130.95/131.05. Dealers said banks traded the spot at 130.95 as the central bank defended at that level through moral suasion. Three-day forwards, or spot-next, also capped at 131.10, closed at 131.10/12 per dollar compared with Thursday's close of 131.00/12.
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