COLOMBO Oct 6 The Sri Lankan rupee ended lower
on Thursday due to importer dollar demand in the absence of
central bank intervention, while seasonal demand from importers
is expected to weigh on the local currency until the year-end,
The spot rupee ended at 146.88/95 per dollar,
compared with Wednesday's close of 146.70/75.
"Foreign buying into government securities has slowed with
the fall in interest rates and there are inflows from
remittances and stock-related transactions," said a currency
dealer, asking not to be named.
"But we see some of the dollars from the inflows are bought
by the central bank. So with the importer dollar demand picking
up, the rupee is under downward pressure. This will continue
until the Christmas festival," the dealer added.
Officials at the central bank were not available for
The central bank has been 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.
The central bank usually intervenes in the market when there
The rupee has been under pressure due to importer dollar
demand, posting a 0.65 percent decline last week.
Finance Minister Ravi Karunanayake said on Monday the
government wanted a strong currency through higher foreign
inflows and without interventions.
(Reporting by Shihar Aneez; Editing by Sunil Nair)