COLOMBO: The Sri Lankan rupee fell on Thursday on dollar demand from importers, but moral suasion by the central bank put a dampener on trade after expectations of a nearly $1 billion inflow from a bond sale failed to ease pressure on the currency, dealers said. Dealers said the banking regulator has been preventing spot rupee trades below 151.35 per dollar. Central bank officials were not available for comment.
The spot currency was quoted at 151.75/152.75 per dollar, but was not traded. Rupee forwards saw slight activity, with one-month forwards quoted at 154.10/40 per dollar, compared with Wednesday’s close of 153.75/154.00. Two-week forwards were quoted at 153.40 per dollar, compared with Wednesday’s close of 152.90/153.10. “Nothing is happening. Everybody is clueless and nobody wants to go down and trade,” said a currency dealer, asking not to be named. On Tuesday, the central bank reversed a transaction on two-week rupee forwards that was weaker than 152.60 per dollar, dealers said at the time. The central bank, on behalf of the government, raised a record $973.25 million through a Sri Lanka Development Bond auction on Tuesday, with inflows expected from Friday.
