COLOMBO: The Sri Lankan rupee was steady in dull trade on Friday as a state-run bank sold dollars at 133.70, dealers said, unchanged from the spot currency's Thursday close, its highest since May 25.
A state-owned bank, through which the central bank usually directs the market, sold dollars at 133.70, keeping the currency steady, dealers said.
Depreciation pressure on the currency eased after Finance Minister Ravi Karunanayake said on Tuesday the spot would climb 3 percent to a two-year high of 130 per dollar in two weeks, dealers said. Three-month forwards were also steady at 135.25/35 per dollar compared with Thursday's close.
"There is not much trade taking place. The rupee is trading at the same levels with the state bank selling at 133.70," said a currency dealer asking not to be named.
The market expects the rupee to gain on expected inflows, but currency dealers said it was unlikely to appreciate as much as 3 percent within such a short period.
The central bank on Thursday raised $327 million from the sale of dollar-denominated development bonds after offering only $100 million. The rupee has gained around 0.4 percent after hitting a record low of 134.20 on June 18.
In the stock market, the benchmark index was down 0.08 percent at 7,025.62 by 0553 GMT. Turnover stood at 612.2 million rupees ($4.58 million). ($1 = 133.6000 Sri Lankan rupees)
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