COLOMBO: The Sri Lankan rupee edged up on Monday as a private bank sold dollars obtained from selling gold, dealers said.
Contrary to market expectations, the local currency has been gaining ahead of the traditional new year in April.
Usually, the rupee falls in March and early April due to higher import demand ahead of the Sinhala-Tamil new year.
However, dealers said they are yet to see higher import demand.
The spot rupee strengthened to 130.57/62 per dollar at 0612 GMT, firmer from Friday's close of 130.62/65.
On Thursday it hit its weakest close since Feb. 28 of 130.68/75.
"A private bank sold dollars which they got after selling gold," a currency dealer said on condition of anonymity.
Another dealer confirmed the sale of gold by the bank.
Dealers said the rupee was expected to trade in a range of 130.50 to 130.75 in the near future.
The currency has gained 0.35 percent in the last 13 sessions through Monday, Thomson Reuters data showed.
It has been on a rising trend since Feb.
27 amid weak demand for dollars from importers, dealers said.
At 0650 GMT, Sri Lanka's main stock index was down 0.09 percent, or 5.41 points, at 5,890.82, trading at its lowest level since Feb. 28.
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