COLOMBO: The Sri Lankan rupee traded steady on Tuesday, as exporter dollar conversions and inward remittances offset dollar demand from banks to meet the year-end seasonal importer rush, dealers said.
The spot rupee was traded 131.10/12 per dollar at 0449 GMT, almost steady from Monday's close of 131.10/13 per dollar. It ended at a more than one-month closing low of 131.15/22 on Friday.
Though moral suasion or intervention by the central bank was not seen, dealers said banks did not trade spot above 131.10 and traded three-day forwards instead of the spot rupee.
Dealers expect the currency to be weighed down by continued importer dollar demand ahead of the December festive season.
However, the pressure on the rupee should start to ease off on offshore remittances by the middle of next month, they said.
The rupee hit a record low of 135.20 on Aug. 28, but has managed to stem further losses and has gained 3.1 percent since then.
At 0525 GMT, Sri Lanka's main stock index was down 0.42 percent, or 24.72 points, at 5,838.10, its lowest since Oct 4.
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