Sri Lankan rupee trades steady; stocks up

COLOMBO, Aug 14 (Reuters) - The Sri Lankan rupee traded steady on Monday as dollar selling by banks and exporters offset the importer demand for the U.S. currency, dealers said.

The spot rupee was trading at 153.05/10 per dollar, little changed from Friday’s close.

Sri Lanka’s central bank is targeting a more flexible exchange rate regime, the government said in a document outlining its policies to the International Monetary Fund.

The central bank has intervened in the foreign exchange market since late February only to build up reserves or to stem excessive movements in the exchange rate, and will continue to do in the future as well, the document released by the IMF showed.

The banking regulator held its policy rates steady early this month and said tightening measures are helping cool inflation and credit growth, signalling receding concerns about price pressure as it focuses on supporting an economy hit by extreme weather.

Sri Lankan shares were 0.2 percent up at 6,505.76 as of 0642 GMT. Turnover was 80.3 million rupees ($524,665). ($1 = 153.0500 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)