COLOMBO: The Sri Lankan rupee traded steady in dull trade as thin importer dollar demand offset light exporter dollar sales, dealers said. The spot rupee was unchanged at 130.63/70 per dollar at 0607 GMT.
"It's a quiet market. There is not much of a trading," said a currency dealer on condition of anonymity.
Contrary to market expectations, the local currency has been gaining ahead of the traditional new year in April. Usually, the rupee falls in March and early April due to higher import demand ahead of the Sinhala-Tamil new year.
However, dealers said they are yet to see higher import demand.
"Importers are uncertain if they could sell goods locally because demand is very low. Consumer spending seems to be very low.
We are not quite sure if the sentiment would improve," a banker told Reuters on condition of anonymity. The currency has gained 0.29 percent in the last 13 sessions through Monday,
Thomson Reuters data showed. It has been on a rising trend since Feb. 27 amid weak demand for dollars from importers, dealers said.
Dealers said the rupee was expected to trade in a range of 130.50 to 130.75 in the near term. At 0611 GMT, Sri Lanka's main stock index was down 0.13 percent, or 7.88 points, at 5,906.23.
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