Sri Lankan rupee forwards firmer on inward remittances
Actively traded two-week rupee forwards ended at 133.75/85 per dollar, compared to Monday's close of 133.87/95.
"There were banks selling due to remittances. The remittances are picking up slowly," said a currency dealer on condition of anonymity.
The central bank, however, prevented a fall in the spot rupee and one-week forwards at 132.90/133.20 and 133.60/75, respectively, within the limits set by it.
Central bank officials were not available for comment.
Dealers said the market was awaiting cues on the direction of interest rates after yields on t-bills fell between 31 and 44 basis points at a weekly auction on Wednesday, after having spiked by 112-124 basis points in two previous weekly auctions.
They said a probe into all bond auctions since 2012 is also hurting sentiment.
Sri Lanka has launched a probe into allegations of corruption in government bond sales held by the central bank since 2012 after opposition parties called for an independent investigation into a February bond auction.
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