COLOMBO: The Sri Lankan rupee edged up on Wednesday, recovering from a record closing low in the previous session as dollar selling by two private banks helped outpace importer demand for the greenback, dealers said.
Two private banks sold dollars in a range of 142.25 to 142.30, which is seen as the central bank's desired level, they said.
The rupee ended at 142.25/30 per dollar. On Tuesday, the currency hit an all-time low of 142.50 per dollar and ended down at a record low of 142.33/40.
"Importer dollar demand was there, but the rupee ended firmer on bank dollar sales," said a currency dealer asking not to be named. "Exporters are very reluctant to sell (dollars) as they expect the rupee to depreciate further."
Dealers said the central bank was still intervening in the market to prevent the fall in the rupee. Officials at the Central Bank of Sri Lanka were not available for comments.
The central bank sold dollars worth a net $277.95 million in October and $523.80 million in September, latest data showed. Dealers said part of that money was spent to defend the rupee.
The rupee has fallen 7.8 percent so far this year and 5.27 percent since the central bank allowed free float on Sept. 4.
Commercial banks parked 141.15 billion rupees ($992.62 million) of surplus liquidity on Wednesday, using the central bank's deposit facility at 6 percent, official data showed.
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