COLOMBO: The Sri Lankan rupee was weaker on Thursday as importer dollar demand offset the impact of inward remittances and exporter dollar sales, but the recent strong selling pressure on the local currency has continued to ease, dealers said.
The rupee spot, which had been inactive for several weeks, was actively traded on Thursday for the second straight session and touched 132.25/30 per dollar in early trade.
It was at 132.30/40 per dollar at 0555 GMT, down from Wednesday's close of 132.25/35.
Earlier in the session the rupee edged up slightly on exporter dollar sales and inward remittances, dealers said.
"We saw importer dollar demand from state banks," which pulled the rupee lower, a currency dealer said.
A modest rebound in the Indian rupee helped contain the local currency's downside.
The Indian rupee was stronger in early trades on Thursday, tracking gains in regional currencies, ahead of a key macroeconomic data later in the session.
Dealers said they were waiting for clues from the Federal Open Market Committee meeting next week as markets wait to see if the US central bank will trim its bond-purchase programme.
The Sri Lankan rupee hit a record low of 135.20 to the dollar on Aug. 28, before recovering.
The rupee has been falling since early July, with foreign investors pulling out of local bonds as US Treasury yields rose on expectations the Federal Reserve would soon begin to taper its big bond buying programme.
The rupee has fallen nearly 3.6 percent this year, after depreciating around 10 percent in 2012.
Sri Lanka's main stock index traded 0.1 percent or 5.86 points higher at 5736.04 by 0604 GMT. It hit a more than eight-month low on Monday after falling 3.9 percent in six straight sessions.
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