Sri Lankan rupee steady in dull trade; stocks rise

Jan 26, 2017 (Reuters) – The Sri Lankan rupee was steady in thin trade on Thursday as dollar demand from importers was offset by selling of the U.S. currency by exporters, dealers said, a day after the central bank revised the spot reference rate by 10 cents to a record low.

Rupee forwards were active, with two-week forwards trading at 150.90/95 per dollar at 0549 GMT. Two-week forwards closed at 150.90/151.00 on Wednesday.

The spot rupee was quoted around the central bank’s revised reference level of 150.25, dealers said.

“There is no big demand and no big supply,” a currency dealer said, asking not to be named.

“The rupee will be under pressure (to depreciate) as we will be getting seasonal (import) demand in a month or two.

There is no reason for it to appreciate unless the country gets a large inflow.”

An index tracking the dollar against a basket of major currencies slid to a seven-week low of 99.793 on Thursday.

Sri Lankan shares were largely flat at 6,131.68 as of 0607 GMT. Turnover stood at 50.54 million rupees (about $336,373).