COLOMBO, Sept 30 The Sri Lankan rupee traded
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 was at 146.75/90 per dollar at 0556
GMT, compared with Thursday's close of 146.90/147.00.
The rupee has fallen 0.58 percent so far this week.
"A few banks are selling dollars due tight rupee liquidity
following yesterday's bond auction," a currency dealer said
asking not to be named.
Sri Lanka's central bank will conduct a reverse repo auction
for 55 billion rupees ($374.58 million) on Friday, through which
it absorbs liquidity from the banking system.
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.
Sri Lankan shares gained, with the benchmark Colombo stock
index up 0.25 percent at 6,544.93 as of 0600 GMT.
Turnover was at 360.7 million rupees ($2.46 million).
($1 = 146.8300 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by