COLOMBO Oct 11 The Sri Lankan rupee edged up on
Tuesday, recovering after three straight sessions of losses on
dollar selling by exporters, with moral suasion by the central
bank preventing the currency from falling, dealers said.
The rupee is, however, expected to face pressure due to
demand for dollars by importers ahead of the festival season in
The spot rupee was quoted at 146.85 per dollar at
0705 GMT, but it was hardly traded for a third day running. The
spot closed at 146.88/95 last Thursday.
Rupee forwards were active, with the spot-next at
147.00/10, edging up from the previous day's close of 147.15/25.
The spot next fell to as low as 147.35 before exporters started
selling dollars, the dealers said.
"Today, we saw moral suasion when the spot-next fell. All
the dealers maintained the trade at 147.15 per dollar before
some exporter dollar came in," a currency dealer said, asking
not to be named.
Dealers said purchases of government securities by foreign
investors have slowed due to a fall in interest rates.
The central bank has been buying dollars from the market to
accumulate reserves to meet targets set by the International
Monetary Fund under a $1.5-billion loan deal, they said.
Officials at the central bank were not available for
Sri Lankan shares were steady, with the benchmark Colombo
stock index 0.01 percent lower at 6,561.80 as of 0714
GMT. Turnover stood at 439.6 million rupees ($3.00 million).
($1 = 146.3700 Sri Lankan rupees)
(Reporting by Shihar Aneez; Editing by Biju Dwarakanath)