Sri Lankan rupee forwards ended a tad weaker on Friday as late importer dollar demand outpaced early inflows of the greenback, while pressure on the local currency is seen persisting through the middle of this year on lower interest rates, dealers said. Actively traded one-month forwards ended weaker at 134.75/95 per dollar, compared with Thursday's close of 134.70/90.
"Importer demand came to the market later in the day," said a currency dealer asking not to be named. Two-week and one-week forwards were steady at 133.90/134.00 and 133.60/70 per dollar, respectively. The central bank through moral suasion prevented the spot rupee from dropping below 132.90/133.20, a limit it set in February. Central bank officials were not available for comment.
Currency dealers said the political uncertainty was weighing on investor confidence and putting pressure on the exchange rate after President Maithripala Sirisena's 100-day programme ended on Thursday. Sirisena, who promised to dissolve the parliament after the end of his 100-day programme on April 23, addressed the nation later on Thursday and sought support of all legislators to pass the constitutional and electoral reforms.
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