COLOMBO: The Sri Lankan rupee recovered from its 10-month low on Tuesday helped by exporter dollar sales, but currency dealers said the downward pressure on the rupee still remained.
The rupee was quoted at 131.55/65 at 0527 GMT, edging up from Friday's close of 131.60/70, its weakest level since Sept. 19.
The markets were closed on Monday for a public holiday.
"Still the pressure remains despite some exporter conversions in light trade that helped the currency appreciate," a currency dealer said.
The rupee has fallen 4 percent since June 7, with foreign investors pulling out of Sri Lanka's treasury bonds due to a rise in US treasury yields.
Dealers said the rupee would move in a range of 131.50 to 132.00 in the short term and continue to depreciate unless the central bank takes some monetary tightening measures.
The central bank will announce its monetary policy at 0200 GMT on Wednesday and the market expects it to keep the rates steady after several measures to ease rates since December last year.
Sri Lanka's main stock index was trading up 0.56 percent, or 33.93 points, at 6074.99 at 0535 GMT.
Foreign investors were net buyers of 1.48 billion rupees ($11.24 million) worth of shares so far this month, extending the net foreign inflow so far this year to 16.65 billion rupees.
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