COLOMBO Oct 5 The Sri Lankan rupee finished
steady on Wednesday as importer dollar demand in early trade was
offset by late remittances in the absence of central bank
intervention, dealers said.
The market, however, expects the local currency to be under
downward pressure due to seasonal imports till mid-December.
The spot rupee closed steady at 146.70/75 per
"There were remittances in the afternoon and that helped
ease the pressure due to importer demand," a currency dealer
said on condition of anonymity.
Another dealer said the rupee will be between 146.50-147.00
range until the end of this year.
The rupee has been under pressure due to importer dollar
demand, posting a 0.65 percent decline last week.
Two dealers said there was neither intervention by the
central bank nor direction by state banks. Usually the central
bank steps into the market whenever there is volatility.
Finance Minister Ravi Karunanayake on Monday said the
government wanted a strong currency through higher foreign
inflows and without interventions.
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.
(Reporting by Shihar Aneez; Editing by Sherry Jacob-Phillips)