Markets

Sri Lankan rupee forwards end steady for 5th straight session

Published December 19, 2014 Updated December 19, 2014 02:57pm

COLOMBO: Sri Lankan rupee forwards closed steady for a fifth straight session on Friday, as the central bank capped trading at 132.00 per dollar through moral suasion.

The four-day forwards or spot-next-next, which were actively traded, closed at 131.98/132.02 per dollar, little changed from Thursday's close of 131.98/132.05.

The spot currency and three-day forwards, or spot-next, were not traded after the central bank capped the currency at predetermined levels to prevent volatility, traders said. Central bank Governor Ajith Nivard Cabraal said the rupee would be stable during this month.

Dealers said Cabraal's statement was not a surprise for the market because the central bank has been holding the currency at the current level. Overseas investors sold a net 367 million rupees worth of government securities during the week that ended Dec. 17. They sold a net 44.27 billion rupees ($337.42 million) worth in the 12 weeks to Dec. 17, data from the central bank showed.

Copyright Reuters, 2014