Sri Lanka rupee firmer on bank, exporter selling
COLOMBO, Sept 26
COLOMBO, Sept 26 (Reuters) - The Sri Lankan rupee ended slightly higher on Thursday on dollar sales by exporters and banks in thin trade as dealers were unwilling to trade above the central bank's earlier directed rate of 132 per dollar, dealers said.
The International Monetary Fund on Wednesday urged the central bank to keep interest rates steady and limit its intervention in the rupee exchange rate "to dealing with excessive short term volatility".
The rupee spot closed at 131.90/132.00, compared with Wednesday's close of 131.95/132.05.
"The rupee is firmer on banks and exporter selling (of dollars). There is not much of a demand," said a currency dealer who declined to be named.
Many dealers expect the rupee to hold steady around the 132.00 level following inflows from the National Savings Bank's $750-million five-year bond issue.
However, some dealers also said the rupee could falter in the medium term, noting the recent pressure caused by lack of steady dollar inflows from exports and remittances from overseas workers.
The currency hit a record low of 135.20 on Aug. 28, but has managed to stem further losses since then. It has fallen 3.3 percent this year, after depreciating about 10 percent in 2012. (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)
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