COLOMBO, Sept 30 The Sri Lankan rupee ended
slightly firmer on Friday, after four straight sessions of
losses, as tight rupee liquidity triggered dollar sales by some
banks, dealers said.
The spot rupee closed at 146.85/95 per dollar,
compared with Thursday's close of 146.90/147.00. The rupee fell
0.65 percent this week.
"A few banks sold dollars due to tight rupee liquidity
following yesterday's bond auction," a currency dealer said
asking not to be named.
Sri Lanka's central bank said it accepted 55 billion rupees
($374.58 million) at 8.50 percent at its reverse repo auction
held on Friday, through which it absorbs liquidity from the
The central bank's decision on Wednesday to hold key
monetary policy rates steady suggested that policy makers were
keen to support a slowing economy even as they kept a tight
leash on rampant credit growth, analysts said.
After the rate decision, treasury bill yields dipped between
16 and 33 basis points.
The central bank is under pressure from the International
Monetary Fund (IMF) to continue rebuilding international
reserves and maintain exchange rate flexibility to develop the
foreign exchange market further.
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by