The Sri Lankan rupee traded a tad weaker on Wednesday hovering near a seven-week low as importer dollar demand outpaced exporters’ dollar sales, dealers said.
The spot rupee traded at 131.10/15 per dollar at 04.35 GMT weaker from Tuesday’s close of 131.08/12. It closed at 131.10/20 last Thursday, near its lowest close since Oct. 4.
“The rupee is bound to strengthen, but we won’t see that until two state banks start buying dollars,” a currency dealer said on condition of anonymity.
He said exporter dollar sales and inflows from remittances had helped the rupee to reverse a depreciation trend.
President Mahinda Rajapaksa, who is also the country’s finance minister, is to present the 2014 budget proposals on Thursday.
The rupee hit a record low of 135.20 on Aug. 28, but has managed to stem further losses and has gained 3.11 percent since then.
At 0439 GMT, Sri Lanka’s main stock index edged up 0.01 percent, or 0.71 points, at 5,809.86. (Reuters)
