COLOMBO, April 30 The Sri Lankan rupee ended
flat on Wednesday as exporter dollar sales in late trade
outpaced early importer demand for the greenback.
However, dealers said they expect the currency to remain
stable in the near term as private sector credit remained
The spot rupee, which fell to as much as 130.64 per
dollar during the day, ended flat at 130.61/63.
"Rupee ended flat on exporter dollar sales," said a currency
Lower credit demand from the private sector, even though key
interest rates have been at multi-year lows since January, has
At an auction on Tuesday, the central bank rejected all bids
for the benchmark 91-day treasury bills with yields already at
their lowest since January 2007, data showed.
Last week, the central bank kept policy rates steady at
Private sector credit grew 4.4 percent year-on-year in
February, the slowest since May 2010, latest data from the
central bank showed. That compared with a growth of 5.2 percent
in January this year and 13.3 percent in February 2013.
The central bank, in its monetary policy statement last
week, expressed confidence that private sector credit growth
would rebound in the second quarter and push up the pace of
Dealers expect the rupee to trade in a 130.60-130.70 range
in the near future until credit growth picks up. The currency
has been hovering between 130.55 and 130.70 since March 3,
Thomson Reuters data showed, with the central bank intervening
to smoothen any sharp volatility.
(Reporting by Ranga Sirilal; Editing by Sunil Nair)