COLOMBO Jan 9 The Sri Lankan rupee ended steady
on Monday, but dealers expect it to fall further on growing
demand for dollars from foreign banks that facilitate sales of
government securities by foreign investors.
The rupee has been under pressure due to rising imports and
net selling of government securities by foreign investors,
Rupee forwards were active, with two-week forwards
ending at 150.60/75 per dollar, steady from Friday's close.
"The market mainly focused on bonds than currency," a
currency dealer said, asking not to be named.
The central bank accepted 55 billion rupees worth of bonds
at auction on Monday.
Last week, the central bank's moral suasion prevented
further decline even as the monetary authority signalled a
change in its intervention policy.
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.
The spot rupee was also hardly traded, dealers
(Reporting by Shihar Aneez and Ranga Sirilal; Editing by Vyas