COLOMBO, March 28 The Sri Lankan rupee traded
weaker on Tuesday due to dollar demand from state banks to cover
Rupee forwards were active, with two-week forwards
were trading at 152.75/85 per dollar at 0628 GMT, compared with
Monday's close of 152.65/75.
"State banks have large import bills to cover and they buy
dollars at higher rates," said a currency dealer, asking not to
The rupee is under pressure due to the higher seasonal
import demand some oil bills, dealers said.
The central bank on Monday raised the spot rupee
reference rate by 10 cents to 151.70 after the bank raised the
it by 25 cents on March 20.
On Friday, the central bank raised interest rates for the
first time in eight months, saying tighter policy was a
precaution against a build-up of inflationary pressures.
Analysts said the rate hike, a move aimed at easing pressure
on the rupee, could help stabilise the domestic currency that is
hurt by rising imports and outflows due to rupee bond sales by
Foreign investors net bought government securities worth 70
million rupees ($461,285) in the week ended March 22. They have
net sold 63.2 billion rupees of such instruments so far this
Sri Lankan shares were down 0.11 percent at 5,968.41
as of 0702 GMT. Turnover stood at 1.53 billion rupees ($10.09
($1 = 151.7000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas