The Sri Lankan rupee ended at an all-time low on Tuesday for a third straight session on thin dollar buying by importers as seasonal imports ahead of Christmas weighed on the local currency, dealers said. Trading was dull due to a banking sector protest after trade unions went ahead with a strike saying their demand to alter some budget proposals were not met.
The rupee fell 0.14 percent to 143.80 per dollar, extending its decline from the previous record trough of 143.65 hit on Monday. The currency finished at 143.70/80 per dollar, compared with Monday's close of 143.60/80. "We believe the rupee could recover to 143 level towards the end of next week once the importer demand is over," said a currency dealer on condition of anonymity.
The rupee has fallen 8.8 percent so far this year. It has slipped 6.3 percent since the central bank floated the local currency on September 4. Dealers, however, say the central bank has been intervening in the forex market via moral suasion and dollar selling. The central bank sold dollars worth a net $1.1 billion in the three months ended on November 30, latest data showed. Dealers said part of that money was spent to defend the rupee.
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