The Sri Lankan rupee closed slightly weaker on Monday due to dollar demand from importers and banks as foreign investors continued to sell government securities, dealers said. Rupee forwards were active with two-week forwards ending at 151.18/25, compared with Friday's close of 151.15/20. The central bank revised the spot rupee reference rate to a record low of 150.50 from 150.25 last week.
Foreign investors net sold 26.6 billion rupees ($177.10 million) worth of government securities in the four weeks to February 1, according to latest central bank data. "Import demand was there, we can see the pressure (to depreciate) with festive demand building up," said a currency dealer requesting anonymity. Sri Lanka's central bank is scheduled to hold its first monetary policy review of 2017 on Tuesday.
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