The Sri Lankan rupee closed flat on Monday in dull trade as importer dollar demand was offset by exporter conversion of US currency, dealers said. The market expects higher seasonal imports and a pick-up in motor vehicle buying after taxes were slashed in last week's budget, weighing on the local currency, they said. The spot rupee, which was earlier traded as low as 153.78, closed at 153.70/80 per dollar, compared with Friday's close of 153.75/8.
"It was a dull market after the weekend. But we see the rupee under downward pressure because of pick-up in seasonal imports," a dealer said asking not to be named. He said the market had expected 4 percent fall in the currency for 2017. "But it will be less than that and we expect the currency to hit a lowest point of 154.50 this year." The rupee has slipped 2.7 percent so far this year.