COLOMBO: Sri Lankan rupee forwards fell on Monday due to importer dollar demand, while dealers said unusual year-end demand for the greenback offset inflows from remittances and weighed on the local currency.
Three-day forwards, or spot-next, ended at 132.15/30 per dollar, down from Friday's close of 131.99/132.04.
"We haven't seen any moral suasion from the central bank. But we saw some directions from the central bank by selling dollars to some select banks," said a currency dealer.
"There has been unusually strong importer demand this month. But today, volumes are low because of the holiday season."
Rupee forwards have been maintained at around 132.00 throughout December as the central bank defended the currency through moral suasion.
Four-day forwards closed at 132.15/30 per dollar, down from Friday's close of 132.02/06.
The spot currency was not traded.
Dealers said unusually high imports towards the end of 2014 amid lower interest rates and a stable exchange rate have put pressure on the rupee.
Comments
Comments are closed for this article.