COLOMBO Jan 6 The Sri Lankan rupee traded
weaker on Friday due to dollar buying by foreign banks and
importers, but the central bank's moral suasion continued to
prevent further decline, days after the monetary authority
signalled a change in its intervention policy.
Rupee forwards were active, with one-month forwards
trading at 151.20/40 per dollar at 0639 GMT, compared with
Thursday's close of 151.00/20.
"Today two-week forwards are trading actively, but we don't
see one-week forwards after yesterday's moral suasion forced
reversal of deals below 150.40," said a currency dealer who
declined to be named.
Officials from the central bank were not available for
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.
Two-week forwards were active and traded at 150.70/80
compared to the previous day's close of 150.65/75, in the
absence of one-week forwards, 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,
Sri Lankan shares were trading firmer at 6,163.51 as
of 0631 GMT. Turnover stood at 106.5 million rupees
($1 = 149.6000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by