The Sri Lankan rupee traded flat on Friday at a more than five-week high as inward remittances and exporter dollar conversions offset importer dollar demand, but the rupee is still under upward pressure, dealers said.
The spot rupee was traded flat at 130.80/85 rupees to a dollar at 0700 GMT, hovering around its highest close since Oct. 25. It has gained nearly 0.32 percent in five straight sessions through Thursday.
“There were no big (import) bills in the market and we haven’t seen state banks (intervening) too,” a currency dealer said.
Central Bank Governor Ajith Nivard Cabraal said on Tuesday the rupee was expected to remain steady at the current levels with most inflows being remittances.
Currency dealers said still the rupee is facing upward pressure due to continued remittances from expatriates for their families ahead of Christmas and the New Year.
Cabraal had told Reuters last week that the central bank would intervene to keep the rupee stable if there was excess volatility after it hit a seven-week low on importer dollar demand despite intervention by state banks.
The rupee has gained 3.34 percent since it hit a record low of 135.20 on Aug. 28.
At 0702 GMT, Sri Lanka’s main stock index was up 0.99 percent or 57.51 points at 5,838.09, Reuters reports.
