COLOMBO: Sri Lankan rupee forwards closed steady on Monday as banks hesitated to sell them beyond 132.00 per dollar due to moral suasion by the central bank amid mild importer dollar demand, dealers said.
The four-day forwards or spot-next-next, which were actively traded, closed at 131.99/132.05 per dollar, compared with Friday's close of 131.98/132.03.
"Credit growth is now picking up and imports are also growing in a lower interest rate and steady exchange rate regime," a currency dealer said. "So we expect some downward pressure on the rupee, but rupee won't be out of control."
The spot currency and three-day forwards, or spot-next, were not traded after the central bank capped the currency at predetermined levels to prevent volatility, traders said.
Central bank officials were not available for comments.
Dealers said they expect the rupee to strengthen from this week onwards through to the year end.
Overseas investors sold a net 3.75 billion rupees worth of government securities during the week ended Dec. 10. They sold a net 43.9 billion rupees ($334.86 million) worth in the 11 weeks through Dec. 10, data from the central bank showed.
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