COLOMBO Oct 14 The Sri Lankan rupee traded
steady on Friday for a second straight session as dollar demand
from importers offset exporter sales of the U.S. currency in the
absence of central bank intervention, dealers said.
The spot rupee was steady at 146.90/95 per dollar
at 0546 GMT.
Rupee forwards were not as active as they were
earlier this week.
The spot rupee is usually managed by the central bank, and
market participants use the forward market levels for guidance
on the currency.
"The market was expecting a rupee appreciation in the past
two days due to exporter dollar sales. But importer dollar
demand was equally strong and we did not see any central bank
directions," a currency dealer said, asking not to be named.
However, dealers expect continued downward pressure on the
currency due to a pickup in seasonal imports through
The rupee posted a 0.4 percent drop last week, following a
0.65 percent loss in the preceding week, Thomson Reuters data
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, dealers said.
Officials at the central bank were not available for
Sri Lankan shares were up, with the benchmark Colombo stock
index 0.08 percent higher at 6,492.47 as of 0550 GMT. It
fell below a key psychological barrier of 6,500 on Thursday.
Turnover stood at 51.1 million rupees ($349,115).
($1 = 146.3700 Sri Lankan rupees)
(Reporting by Shihar Aneez; Editing by Amrutha Gayathri)