Sri Lanka rupee firmer on dlr sales by banks, exporters; stocks down
COLOMBO Oct 4 (Reuters) - The Sri Lankan rupee was stronger on Friday morning as banks and exporters sold dollars despite mild importer demand for the greenback, while the main share index dropped slightly on selling in large caps.
Some dealers expect the rupee to gain further on expected inflows from some corporate bonds.
A weak dollar, languishing around an eight-month low against a basket of currencies on Friday as the U.S. budget standoff drags on, also helped sentiment.
"The rupee strengthened on banks dollar sales, but importer dollar demand by state banks prevented it from rising further," said a currency dealer.
The rupee spot, which gained to 131.25 per dollar in early trade on bank dollar sales, retreated to 131.30/40 by 0618 GMT, still a tad firmer than Thursday's close of 131.35/45.
Sri Lanka's main stock index was down 0.1 percent, or 5.87 points, at 5,809.09, as investors sold blue chips like John Keells Holdings PLC.
The rupee hit a record low of 135.20 on Aug. 28, but has managed to stem further losses since then. It has risen 3.2 percent since hitting its all-time low.
The currency is down 2.7 percent this year, after depreciating about 10 percent in 2012.
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