COLOMBO: The Sri Lankan rupee recovered on Friday from its 10-month low hit in the previous session on exporter dollar conversion and as commercial banks sold the greenback to cover rupee liquidity shortage, currency dealers said.
The rupee ended at 131.60/70, recovering from Thursday's close of 131.65/75, its lowest close since Sept. 19.
"The rupee is stronger for the day due to exporter dollar conversions and banks' dollar sales to cover rupee liquidity," said a currency dealer.
Dealers said rupee liquidity was tight and the central bank pumped Rs.3 billion ($22.79 million) into the market through a reverse repo auction at 8.28 percent.
Dealers expect the rupee to move in a range of 131.50 to 132 in the short term and said 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.
Sri Lanka rupee rises from 10-month low
