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Sri Lankan rupee forwards ended steady on Thursday as dollar sales by exporters and banks offset importer demand for the greenback, currency dealers said. The rupee is, however, expected to further depreciate due to rising imports, selling of government securities by foreign investors and slowing dollar inflows, the dealers said. One-week rupee forwards, which act as a proxy for spot, ended at 144.43/50 per dollar, hardly changed from Wednesday's close of 144.42/48.
Rupee forwards have been active since January 27 as there has been little trading in the spot currency, with banks reluctant to trade below the 144.00 level amid moral suasion by the central bank.

Copyright Reuters, 2016

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