The Sri Lankan rupee ended slightly firmer on Friday after the central bank sold dollars to support the domestic currency, dealers said. The rupee ended at 157.85/158.10 per dollar, compared with Thursday's record closing low of 157.90/158.10.
The currency hit an all-time low of 157.90 per dollar on May 2. It has declined 0.06 percent so far this month after a 1.5 percent fall in April. "Today the forward markets were active as there were not much of spot trades due to the fear that the central bank would not allow to trade above 157.90," a currency dealer said, asking not to be named.
"Today the central bank did not sell dollars but we have seen two state banks selling dollars probably on behalf of the central bank." Officials at the Central Bank of Sri Lanka were not immediately available for comment.
Central bank governor Indrajit Coomarswamy on Friday said the rupee will depreciate gradually as dollar outflows surpass inflows. The bank was "studying carefully" if there was extra pressure on the currency than was expected and also the behaviour of market participants, he added.
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