The Sri Lankan rupee touched a fresh record low of 158.80 on Friday owing to dollar demand from foreign banks and importers but ended steady on late inflows from remittances, dealers said. The spot rupee hit a new all-time low of 158.80 per dollar, surpassing its previous low of 158.50 hit on May 16. However, it ended at 158.50/70, little changed from Thursday's close of 158.50/60.
The currency has declined 3.4 percent so far this year. "There was more than 1 billion rupees ($6.31 million) outflow from a stock-related transaction and a foreign bank bought dollars, while importer demand also was there," a currency dealer said. "Later in the day we saw some inflows from remittances." Dealers said the rupee will be under pressure with exporters staying on the sidelines in anticipation of a fall in the unit, in line with other emerging market currencies.