The Sri Lankan rupee gained for the first time in seven sessions on Tuesday, edging up from a record closing low hit in the previous session, dealers said. The currency hit a record low for the past five straight sessions as dollar demand from importers and banks surpassed selling of the greenback by exporters. The central bank on Friday said that it would intervene to support the rupee when necessary and that there was no reason for the rupee to be under pressure given the country's record $10 billion foreign currency reserves.
The rupee closed at 157.70/90 per dollar, marginally firmer from Friday's all-time closing low of 157.85/95. The markets were closed for a holiday on Monday. It fell 0.9 percent last week and 1.5 percent in April. Sri Lankan markets opened on Tuesday after the government, citing a Buddhist celebration on Sunday and Monday, decided to celebrate workers day on May 7.
"We see some kind of stability in the market. The rupee is holding below 158 level. Exporters have started to convert and that has helped a little bit to ease the pressure," a currency dealer said.