The Sri Lankan rupee traded steady on Tuesday near its
two-month closing high amid high inward remittances, while a state-run bank
bought dollars to curb any sharp appreciation in the currency, dealers said.
the rupees forward premiums were under pressure after yields in T-bills
dropped, traders said.
spot rupee was at 130.72/75 per dollar at 0751 GMT, near its Mondays close of
130.70/73, which was the highest close since Oct. 25.
said one of the two state-run banks, through which the central bank usually
directs the market, bought dollars at 130.70 per rupee.
we are witnessing heavy dollar inflows from inward remittances. A state bank
bought dollars to curb sharp appreciation in the rupee, said a currency
premiums came down after the yields in T-bills fell at the auction. Both
three-month and six-month premiums fell by around 50 cents, the dealer said.
in 91-day and 182-day T-bills dropped 19 basis points (bps) and 34 basis
points, respectively, while yield in 364-day t-bill fell 24 bps to their lowest
levels since November 2011 at a weekly auction on Wednesday.
rupee has been facing upward pressure since mid-November as expatriates are
sending money for their families ahead of Christmas and New Year.
rupee has gained about 3.4 percent since it hit a record low of 135.20 on Aug.