Sri Lankan rupee forwards firmer

Sri Lankan rupee forwards gained on Thursday as exporters sold dollars after being away from the market recently due to the local currency's weakness, and as banks offloaded the green back to cover short positions. Importers stayed on the sidelines as moral suasion by the central bank left spot rupee untraded. The rupee and three-day forwards, or spot-next, were not traded after the central bank capped the currency at predetermined levels to prevent volatility.
Central bank officials were not available for comment. Dealers said four-day forwards, or spot-next-next, were actively traded and ended firmer at 131.65/75 per dollar, up from Wednesday's closing level of 132.25/35. "There were no importers in the market as the rupee was too expensive after falling in the last few days. We have seen some exporters and banks selling dollars," a currency dealer said. Overseas investors bought a net 457.8 million rupees worth of government securities during the week ended November 19. They sold a net 39.1 billion rupees ($298.5 million) in the eight weeks through November 19, data from the central bank showed.