COLOMBO, Sept 22 The Sri Lankan rupee ended
higher on Thursday as dollar sales by a foreign bank helped
currency forwards outpace importer dollar demand, but the market
expects the rupee to be under downward pressure due to a rise in
demand for imports, dealers said.
Rupee forwards were actively traded and one-week
forwards ended at 146.45/65, firmer from Wednesday's close of
The spot rupee was quoted at 145.90/146.60, but was not
"The one-week forwards traded at 146.55 in early trade. But
they appreciated due to dollar sales by a foreign bank, possibly
from stocks- and bond-related inflows," a currency dealer said,
asking not to be named.
Traders were unwilling to trade the spot rupee below 146.00
, the level desired by the central bank, dealers said.
The spot rupee is usually managed by the central bank and
market participants use the forward market levels for guidance
on the currency.
Officials from the central bank were not available for
Another dealer said the market expects the local currency to
be under downward pressure in the coming weeks.
"The usual seasonal importer demand is expected to pick up
from now and will continue until mid-December."
(Reporting by Shihar Aneez and Ranga Sirilal; Editing by