December 2, 2013 / 11:57 AM / 4 years ago

Sri Lanka rupee ends slightly higher on remittances

COLOMBO, Dec 2 (Reuters) - The Sri Lankan rupee rose to a one-month closing high on Monday due to high inward remittances from Sri Lankan expatriates for their families ahead of Christmas and the New Year, dealers said.

The spot rupee rose 0.2 percent to 131.00/05. It had closed at 131.20/30 per dollar on Friday, around its lowest level since Oct. 10.

“There were inward remittances more than importer demand,” a currency dealer said on condition of anonymity.

Dealers said the three-day rupee forward or spot next was not traded on Monday as in the past week because the spot was not protected by the central bank.

Last week, the central bank did not allow the spot rupee to trade beyond 131.20 per dollar, with state banks selling dollars for selected banks at that level, dealers said.

Central bank Governor Ajith Nivard Cabraal told Reuters on Wednesday that the monetary authority would intervene to keep the rupee stable if there was excess volatility after it hit a seven-week low on importer dollar demand despite intervention by state banks.

The spot was kept steady at 131.10 for three weeks through Nov. 25, before being allowed to trade at 131.15.

The rupee hit a record low of 135.20 on Aug. 28, but has managed to stem further losses and has gained 3.2 percent since then. (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

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