COLOMBO: The Sri Lankan rupee traded steady on Thursday as dealers were reluctant to trade the spot rupee above 131.10, but currency forwards fell due to importer dollar demand, dealers said.
The spot rupee was quoted flat at 131.10/15 per dollar at 0533 GMT, same as Wednesday's close.
It was shy of the Nov. 14 close of 131.10/20, its lowest since Oct. 4.
Three-day forward or spot-next, which was active in the market, was traded at 131.25/35 per dollar at 0534 GMT, weaker from Wednesday's close of 131.13/18.
"No sellers are in the market and they are waiting for the budget," a currency dealer said.
"Nobody wants to buy spot above 131.10 because that level is seen desirable by the central bank and therefore the spot next is active." Sri Lankan President Mahinda Rajapaksa, who is also the finance minister, will unveil the 2014 budget later on Thursday that is expected to include populist measures ahead of a possible election year as well as some tax hikes to enable the government to further trim its fiscal deficit.
The rupee hit a record low of 135.20 on Aug. 28, but has managed to stem further losses and has gained 3.10 percent since then.
At 0539 GMT, Sri Lanka's main stock index edged up 0.23 percent, or 13.15 points, at 5,806.68, recovering from a seven-week closing low.
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