COLOMBO Oct 30 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
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
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
Sri Lanka's main stock index was trading 0.25
percent, or 14.68 points up, at 5,921.21 as of 0511 GMT.
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by