COLOMBO Jan 6 The Sri Lankan rupee ended lower
on Friday on dollar demand from importers, but the central
bank's moral suasion continued to prevent further decline, even
days after the monetary authority signalled a change in its
Rupee forwards were active, with one-month forwards
ended at 151.15/30 per dollar, compared with Thursday's close of
"Today one-month and two-week forwards traded 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, they
($1 = 149.6000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas