COLOMBO: Sri Lankan rupee forwards closed little changed on Friday, with dealers saying they expect the local currency to remain flat until year-end due to lacklustre demand in the holiday season.
The three-day forwards, or spot-next, which started to trade on Monday after nearly four weeks, ended the day at 131.99/132.04 per dollar, compared to Wednesday's close of 131.99, dealers said.
Both the currency as well as stock markets were closed on Thursday for Christmas.
"It seems the cenbank is comfortable with spot next trading," said a currency dealer asking not to be named. Four-day forwards closed little changed at 132.02/06 per dollar compared with Wednesday's close of 131.99/132.05.
Dealers said unusually high imports towards the end of 2014 amid lower interest rates and a stable exchange rate have put pressure on the rupee.
The spot currency was not traded after the central bank capped the currency at a predetermined level to prevent volatility, traders said. Central bank Governor Ajith Nivard Cabraal said last week that he expected the rupee to be stable during this month.
Overseas investors sold a net 706 million rupees worth of government securities during the week ended Dec. 24, extending the net foreign outflow in the month so far to 6.38 billion rupees.
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