COLOMBO: The Sri Lankan rupee ended little changed against the dollar on Wednesday amid inward remittances and selling of the U.S. currency by exporters, while demand for the greenback from importers weighed on sentiment, dealers said.
They said the two state banks, through which the central bank usually intervenes to stem major declines in the currency, bought dollars at 130.19, a level which the central bank is seen comfortable with.
They expect the local currency to remain steady for the rest of the year after central bank Governor Ajith Nivard Cabraal said recently the banking regulator would intervene in the thinly-traded market whenever needed to keep the rupee stable.
The rupee ended at 130.19/21 per dollar, compared with Tuesday's close of 130.20/21.
"With the state banks buying, the rupee will not go down until they fulfil whatever their requirement," said a currency dealer.
Foreign investors bought a net 250 million rupees ($1.9 million) worth of government securities in the week ended Aug. 27, official data showed.
The central bank did not offer 91-day t-bills at the weekly auction on Wednesday after it rejected all bids in the last two auctions, while yields on the 182-day and the 364-day treasury bills held steady for the third time.
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