* State bank dlr sales help rupee recovery
* Importer dlr demand drives rupee to all-time low
* Stocks down 0.8 pct to 2-week low
COLOMBO, June 28 The Sri Lankan rupee hit
a record low on Thursday on importer demand for the U.S.
currency, but a state bank intervention helped the local unit to
recover, dealers said.
The rupee hit a new low of 134.30 to the dollar, surpassing
its previous low of 134.10 hit on Wednesday.
"The highest deal was done at 134.30 on light trade due to
importer dollar demand. But it eased after the state bank
started selling dollars around the 133 level," a currency dealer
said on condition of anonymity.
Two other dealers confirmed the move.
The rupee closed at 133.80/90 to the dollar, a tad firmer
from Wednesday's close of 133.90/134.00. It has fallen 1.75
percent since June 18.
Analysts expect the rupee to stabilise and to reach 128 by
end of the year, provided the central bank tightens monetary
The central bank has already raised rates twice since
February and curbed credit growth to reduce demand for dollars
in the market.
The rupee has lost 17.8 percent of its value since November,
when the government allowed a 3 percent devaluation.
The Colombo Stock Exchange's main index lost 0.8
percent or 39.78 points to 4,955.91, its lowest since June 14.
Turnover was 797.2 million rupees ($5.96 million), below
this year's daily average turnover of 988.4 million rupees.
Foreign investors were net sellers of 199.6 million rupees
worth of shares on Thursday, but they have been net buyers of
23.13 billion rupees so far this year.
($1 = 133.7500 Sri Lanka rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Jeremy