Sri Lanka rupee tad firmer on bank dlr sales
COLOMBO Oct 30 (Reuters) - The Sri Lankan rupee strengthened on Wednesday, edging up from a near two-week low as banks sold dollars, but downward pressure on the currency is expected in the near term because of seasonal and project-related imports, dealers said.
Some dealers said a state bank, through which the central bank usually directs the market, was seen selling dollars at 131.10 rupees.
The spot rupee traded at 131.05/15 per dollar by 0458 GMT, firmer than Tuesday's close of 131.10/20 per dollar, its lowest close since Oct. 17.
"We see a cap at 131.10 per dollar. A state bank sold dollars at 131.10 and we will not see a huge depreciation unless the cap is removed," said a currency dealer who asked not to be named.
The currency, which appreciated 0.4 percent last week on foreign buying in the rights issue of John Keells Holdings Plc , hit a near four-month closing high last week.
The rupee hit a record low of 135.20 on Aug. 28, but has managed to stem further losses and is up 3.12 percent since then.