Sri Lankan rupee forwards ended steady on Friday on hopes expected inflows would help stabilise the currency while a state-run bank sold ample dollars to keep the spot currency at current levels, dealers said. One-week forwards, which were actively traded, ended steady at 134.10/20 per dollar, while three-month forwards, which have been actively traded over the last few weeks in the absence of spot, ended at 135.70/90, little changed from Thursday's close of 135.70/136.00.
The spot rupee also ended steady at 133.90 per dollar as a state-run bank, through which the central bank usually directs the market, sold dollars at 133.90 for a fourth straight day, dealers said. "Dollars are being well offered by the state bank. Though exporters are not converting largely, we see the forwards are holding steady," a currency dealer said asking not to be named.
"As far as the central bank can offer ample dollars, the rupee will be stable. Going forward, the stability will depend on the inflows the country is going to get, though the government expects heavy inflows." On Monday, the spot currency started to trade after nearly six months after the island nation raised nearly $1 billion from bond sales last week.