COLOMBO: The Sri Lankan rupee was firmer at a more than three-month high on Thursday as exporters sold dollars due to gains in the local currency boosted by dollar inflows, a day after the central bank said the rupee was facing appreciation pressures.
Central Bank Governor Ajith Nivard Cabraal told Reuters on Wednesday that the rupee was under appreciation pressure and the central bank had been intervening to curb a sharp rise.
Spot rupee was trading at 130.55/60 per dollar at 0523 GMT, its highest since July 16 and firmer than Wednesday's close of 130.70/77.
Dealers said two state banks, through which the central bank directs the market, were seen buying dollars at 130.60 rupees. "Some exporters panicked and started selling dollars.
Now we see the market returning to trade on fundamentals," a currency dealer said on condition of anonymity.
Dealers said foreign buying in conglomerate John Keells Holdings for a fourth day helped boost the currency. The company is raising $299 million by selling rights and warrants to fund a $850 million resort project.
The deadline to raise the money is Friday.
The rupee hit a record low of 135.20 on Aug. 28, but has managed to stem further losses and has risen 3.52 percent since then. Sri Lanka's main stock index, was up 0.4 percent, or 23.36 points at 5,924.26, by 0550 GMT.
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