COLOMBO: Sri Lankan rupee forwards were slightly up on Tuesday due to dollar inflows from remittances, but trading was thin as the market awaited cues on the direction of interest rates, dealers said.
Actively traded two-week rupee forwards stood at 133.85/95 per dollar at 0632 GMT, compared to Monday's close of 133.87/95.
"Nothing is happening. It's a very dull day but remittances are picking up slowly," said a currency dealer on condition of anonymity.
The central bank, however, prevented a fall in the spot rupee and one-week forwards at 132.90/133.20 and 133.60/75, respectively, within the limits set by it.
Central bank officials were not available for comment.
Dealers said the market was awaiting cues on the direction of interest rates after yields on t-bills fell between 31 and 44 basis points at a weekly auction on Wednesday, after having spiked by 112-124 basis points in two previous weekly auctions.
They said a probe into all bond auctions since 2012 is also hurting sentiment.
Sri Lanka has launched a probe into allegations of corruption in government bond sales held by the central bank since 2012 after opposition parties called for an independent investigation into a February bond auction.
The main stock index was 0.36 percent lower at 7,016.75 at 0636 GMT, near a six-week low. Turnover was 159.7 million rupees ($1.21 million).
Stockbrokers expect the market to be in the red until the political situation stabilises even after Sri Lankan President Maithripala Sirisena formed a national government on Sunday.
Sirisena, incorporating the main opposition party, has formed a national government in a bid to push through reforms and preserve political stability.
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