The Sri Lankan rupee traded at its lowest level in more than a week on Thursday on importer dollar demand, but the market was sluggish as most investors were in a holiday mood, dealers said. The spot rupee was at 130.90/95 per dollar at 0550 GMT, its lowest point since Dec. 3, and weaker from Wednesday’s close of 130.80/90.
“We have seen some demand for dollars,” a currency dealer said.
The currency has gained nearly 0.4 percent in seven straight sessions through Monday.
Central Bank Governor Ajith Nivard Cabraal said on Tuesday the monetary authority will only go in for limited intervention to prevent high volatility in the currency.
Cabraal said last week that the rupee was expected to remain steady at current levels with most inflows being remittances.
Currency dealers said the rupee was facing upward pressure as expatriates were sending money for their families ahead of Christmas and the New Year.
The rupee has gained 3.32 percent since it hit a record low of 135.20 on Aug. 28.
At 0529 GMT, Sri Lanka’s main stock index was up 0.2 percent, or 11.65 points, at 5,799.46, Reuters.
