The Sri Lankan rupee strengthened to a one-month high, as a state-run bank sold dollars at 133.70, 10 cents lesser than previous session's close, while some banks sold dollars on hopes that the currency would rise further, dealers said. Finance Minister Ravi Karunanayake said on Tuesday the spot would climb 3 percent to a two-year high of 130 per dollar from current levels due to ample dollar inflows.
The spot rupee ended at 133.70 to a dollar, its highest close since May 25 and firmer from Wednesday's close of 133.80. Three-month forwards were firmer at 135.25/35 per dollar compared with Wednesday's close of 135.40/50. "The rupee is firmer as the state bank lowered the selling rate by 10 cents to 133.70," said a currency dealer asking not to be named. "There were some bank dollars as well. Importers are waiting for the rupee to appreciate."

Copyright Reuters, 2015

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