COLOMBO: The Sri Lankan rupee ended firmer on Tuesday as dollar supply due to greenback sales by exporters surpassed importer demand for the US currency, dealers said.
The spot rupee ended at 153.45/50 per dollar, up from Monday's close of 153.50/60.
"There was exporter conversions and exporters are booking forward expecting further appropriation of rupee after the port deal," a currency dealer said, requesting anonymity.
"Import demand was also there. State banks were buying probably to pay the oil bills so I think the appreciation is short-lived."
Central bank Governor Indrajith Coomaraswamy earlier said the rupee was still "over-valued", and that the monetary authority was buying dollars to avoid any appreciation.
The banking regulator is compelled to buy dollars from the market to meet a reserves target set by the International Monetary Fund (IMF) under a $1.5 billion, three-year loan programme.
Dealers said a port deal signed during the weekend also helped boost sentiment.
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