COLOMBO: The Sri Lankan rupee was steady on Monday ahead of the central bank's January policy rate decision as dollar sales by a private bank helped offset demand for the greenback from importers, dealers said.
Some market analysts expect a rate hike in the central bank's monetary policy rate review scheduled at 1400 GMT on Monday. But a Reuters poll expects the central bank to keep its key interest rates steady.
The private bank might have sold dollars on behalf of the central bank, some dealers said. Officials at the central bank were not available for comments.
The rupee was flat at 144.00/20 per dollar at 0614 GMT.
"A private bank is selling dollars at 143.90 rupees. But the demand for dollars is there," said a currency dealer, asking not to be named.
The dollar selling by the private banks has prevented a fall in the local currency in the last few days, dealers said.
Many dealers said a 150-basis-point increase in commercial banks' statutory reserve ratio with effect from Jan. 16 had not eased the pressure on the currency as expected.
Sri Lanka's main stock index was 0.56 percent weaker at 6,349.39 at 0621 GMT. Turnover stood at 186.4 million rupees ($1.3 million).
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