COLOMBO Jan 11 The Sri Lankan rupee traded
slightly weaker on Wednesday as importer dollar demand surpassed
greenback sales by foreign banks, dealers said.
The rupee has been under pressure due to rising imports and
net selling of government securities by foreign investors, they
Rupee forwards were active, with two-week forwards
trading at 150.55/65 per dollar at 0518 GMT, slightly weaker
from Tuesday's close of 150.45/55.
"There was (dollar) supply from some foreign banks, but the
rupee is trading weaker today due to some importer
(dollar)demand," a currency dealer said, asking not to be named.
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 last week
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
Sri Lankan shares traded 0.08 percent firmer at
6,157.42 as of 0527 GMT. Turnover stood at 62.5 million rupees
($1 = 149.9000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas