The Sri Lankan rupee ended steady for a fourth straight session on Wednesday as a state-run bank sold dollars at 133.60, dealers said. Three-month and six-month rupee forwards also ended steady at 135.30/40 per dollar and 136.85/95 respectively as inward remittances and mild exporter conversions offset slight importer dollar demand.
Last Thursday, the state-run bank, through which the central bank usually directs the market, lowered the dollar selling rate by 10 cents from the previous session's close of 133.70. Currency dealers said traders were cautious due to political uncertainty before the upcoming elections. President Maithripala Sirisena dissolved parliament on June 26 and scheduled the election for August 17, in an effort to consolidate power and push through political reforms, ending a months-long deadlock. "There were some exporter conversions and remittances but importers were waiting, looking at the direction (of the rupee)," a currency dealer said on condition of anonymity. The currency has appreciated 0.45 percent since it hit a record low of 134.20 on June 18.