COLOMBO Jan 5 The Sri Lankan rupee ended weaker
on Thursday due to dollar buying by foreign banks, but the
central bank's moral suasion prevented further fall, two days
after the monetary authority signalled a change in its
Central Bank Governor Indrajith Coomaraswamy said on Tuesday
that defending the rupee with foreign exchange reserves
"doesn't seem sensible" as it has always been followed by a
sharp depreciation in the currency.
Rupee forwards were active, with one-month forwards
closing at 151.00/20 per dollar, compared with Wednesday's close
"The one-week forwards traded at 150.40 and 150.50, but
moral suasion forced reversal of deals below 150.40," said a
currency dealer who declined to be named.
"There was (dollar) demand from some foreign banks probably
for bond outflows."
Officials from the central bank were not available for
One-week forwards ended at 150.35/45 per dollar, compared
with Wednesday's close of 150.20/30, while spot-next forwards
and the spot rupee were hardly traded, dealers said.
The rupee has been under pressure due to rising imports and
net selling of government securities by foreign investors,
($1 = 149.4000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by