COLOMBO: The Sri Lankan rupee ended 0.11 percent weaker, touching a 10-month low, due to importer dollar demand though banks sold dollar to cover rupee liquidity shortage, currency dealers said.

The rupee closed at 131.65/75, its lowest close since Sept. 19, slipping from Wednesday’s 131.50/60.

“The rupee is weaker on importer dollar demand though banks sold dollars to cover (rupee) short positions,” said a currency dealer.

Dealers said they expected the rupee to move in a range of 131.50 to 132 in the short term, adding that the currency would continue to depreciate unless the central bank took some monetary tightening measures.

The rupee has fallen 4.1 percent since June 7 as foreign investors pulled out of Sri Lanka’s treasury bonds due to a rise in US treasury yields.