The Sri Lankan rupee was steady on Monday in dull trade as cautious investors waited on the side lines due to local and global uncertainties, dealers said.

The rupee was at 143.75/80 per dollar at 0645 GMT, little changed from Friday’s close of 143.75/85. It hit a record low of 144.30 on Jan. 5.

“The FX market is very dull, nothing is happening due to the uncertainty,” said a currency dealer on condition of anonymity.

The central bank, in a move to instil investor confidence, last week said it would lift all restrictions on outflows from nationals who send money that is earned in foreign currencies.

Central Bank Governor Arjuna Mahendran last week said the steep fall in the rupee has slowed and the currency seems to be stabilising at the current level due to inflows from remittances.

Some analysts expect the rupee to stabilise due to a gradual rise in market interest rates. Yields on 91-day t-bills rose by 14 basis points to a more-than-two-month high at a weekly auction last Wednesday after the central bank said the statutory reserve ratio would be raised by 150 basis points with effect from Jan. 16.

Sri Lanka’s main stock index was down 1.02 percent, or 68.87 points, at 6,657.41 at 0653 GMT, heading for a sixth straight session of falls. Turnover stood at 677.4 million rupees ($1.39 million).

“Market is dragged down by banks and diversified,” said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.

“Investors are worried over the increasing interest rates, Reuters reports.

-Agencies