COLOMBO: The Sri Lankan rupee traded steady on Monday near its two-month closing high amid inward remittances and exporter dollar sales while a state-run bank bought dollars to curb sharp appreciation, dealers said.
The spot rupee was at 130.72/75 per dollar at 0730 GMT compared with Friday's close of 130.70/73, its highest close since Oct. 25.
Dealers said one of the two state-run banks, through which the central bank usually directs the market, bought dollars at 130.70 per rupee. "There are ample dollars from both exporter dollar sales and inward remittances.
A state bank bought dollars to curb upward pressure on the rupee," said a currency dealer.
The rupee has been facing upward pressure since mid-November as expatriates are sending money for their families ahead of Christmas and New Year. The rupee has gained around 3.4 percent since it hit a record low of 135.20 on Aug. 28.
At 0740 GMT, Sri Lanka's main stock index was down 0.13 percent, or 7.67 points, at 5,849.69.
Market shrugged off a securities regulator's rule asking main listed companies to ensure that at least 20 percent of their shares were available to trade by the end of 2016 to raise liquidity, attract foreign funds and curb manipulation.
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