Sri Lanka rupee near 2-week low on importer dollar demand; shares slip
COLOMBO Dec 13 (Reuters) - The Sri Lankan rupee fell to a near two-week low on Friday due to importer dollar demand ahead of a long weekend, but dealers said they were reluctant to trade above 131 per dollar, a level the central bank is seen comfortable with.
The spot rupee was trading at 130.90/131.00 per dollar at 0545 GMT, its lowest since Dec.3 and slightly weaker from Thursday's close of 130.90/95.
"There is importer (dollar) demand, but the central bank is not happy trading above 131. There is no intervention but that is the indication," a currency dealer said.
Two other dealers confirmed that dealers were reluctant to trade above 131.
The currency has gained nearly 0.4 percent in seven straight sessions through Monday.
Central Bank Governor Ajith Nivard Cabraal said on Tuesday that the monetary authority would only go in for limited intervention to prevent high volatility in the rupee.
Cabraal said last week that the rupee was expected to remain steady at current levels as most inflows were 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 3.2 percent since it hit a record low of 135.20 on Aug. 28.
At 0554 GMT, Sri Lanka's main stock index was down 0.05 percent, or 2.64 points, at 5,790.55. (Reporting by Ranga Sirilal; Editing by Prateek Chatterjee)
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