COLOMBO: The Sri Lankan rupee recovered on Tuesday due to remittances from migrant workers and exporter dollar sales ahead of the festive season, dealers said.
The spot rupee was traded at 130.60/65 per dollar at 0522 GMT, firmer from Monday's close of 130.68/70.
"Inflows from remittances and exporter conversions strengthen the rupee," said a currency dealer. Dealers said the rupee is likely to trade between 130.50 and 130.80 in the short to medium term and could appreciate further if the central bank does not intervene.
The local currency had been steady at 130.70 per dollar for the six sessions through Wednesday, as dealers were reluctant to trade due to moral suasion by the central bank, before it appreciated on seasonal inflows.
Depreciation pressure is seen easing due to expected inflows from remittances that will prompt dollar selling by banks.
The currency has gained 0.36 percent since Feb. 25, but has lost 0.17 percent so far this year, Thomson Reuters data showed.
In the equities market, Sri Lanka's main stock index was up 0.25 percent, or 14.90 points, at 6,063.28 as of 0522 GMT.
Comments
Comments are closed for this article.