COLOMBO Oct 12 The Sri Lankan rupee edged up on
Wednesday as dollar selling by exporters outpaced importer
demand for the greenback ahead of the festive season in
December, while moral suasion by the central bank prevented the
local currency from falling, dealers said.
The spot rupee was quoted at 146.85 per dollar at
0627 GMT, but it was hardly traded for a fourth day running. It
closed at 146.88/95 last Thursday.
The spot rupee is tightly managed by the central bank and
market participants use the forward market levels for guidance
on the currency.
Rupee forwards were active, with the spot-next at
147.05/12, edging up from the previous day's close of 147.10/18.
"The spot rupee is not allowed trade below 145.90 and the
spot next is not allowed below 147.15," said a currency dealer
asking not to be named.
"Exporter dollar sales helped the currency to gain though it
is still under (downward) pressure."
The central bank has been buying dollars from the market to
accumulate reserves to meet targets set by the International
Monetary Fund under a $1.5-billion loan deal, dealers said.
Officials at the central bank were not available for
The rupee has been under pressure due to importer dollar
demand, posting a 0.4 percent fall last week, following a 0.65
percent loss in the preceding week, Thomson Reuters data showed.
Sri Lankan shares were down, with the benchmark Colombo
stock index 0.22 percent lower at 6,523.91 as of 0727
GMT. Turnover stood at 384.6 million rupees ($2.63 million).
($1 = 146.3700 Sri Lankan rupees)
(Reporting by Shihar Aneez; Editing by Subhranshu Sahu)