Rupee rises on exporter dollar sales

REUTERS: The Sri Lankan rupee gained further yesterday due to dollar selling by exporters and a state bank, days after the central bank said underlying fundamentals do not warrant the current downward pressure on the currency. 

The rupee hit a record low for a third straight session on Wednesday at 158.50 per dollar after the Central Bank chief said on May 11 that the currency would depreciate gradually as dollar outflows surpass inflows. 

The spot rupee closed at 157.60/90 per dollar, compared with Thursday’s close of 157.65/95. “There were some inflows today. We saw some exporter (dollar) sales and also a state bank sold dollars,” a currency dealer said.  The currency has declined 0.03 percent so far this month after a 1.5 percent fall in April. It has fallen 2.8 percent this year. The pressure on the currency is unwarranted as the gross external reserves are at US$9.1 billion and the real effective exchange rate indexes indicate that the currency is competitive, the central bank said on Wednesday.