COLOMBO: The Sri Lankan rupee ended firmer on Friday due to exporter dollar conversions and dealers now expect the downward pressure on the currency to ease in the short term, with the central bank eager to hold the greenback below Rs. 132.
The rupee was firmer on genuine flows, exporter conversions and slower importer dollar demand, a currency dealer said asking not to be named. The pressure (to depreciate) is easing off, the dealer added.
The rupee ended at 131.58/72, stronger from its Thursday close of 131.60/70.
Spot rupee had dropped to 131.65/75 on July 25, its lowest close in nearly 10 months.
The rupee has fallen around 4 percent since June 7 as foreign investors pulled out of Sri Lankan bonds and other emerging market assets due to a rise in US treasury yields.
Dealers expect the rupee to move in a range of 131.50 to 132.00 in the short term and depreciate further unless the central bank steps in with monetary tightening measures or the country sees significant dollar inflows.
Sri Lanka rupee strengthens
