COLOMBO, Nov 6 (Reuters) - The Sri Lankan rupee failed to
hold on to earlier gains and ended slightly weaker on Wednesday
at a four-week closing low as early exporter dollar conversions
outpaced the year-end seasonal importer demand, dealers said.
The spot rupee ended at 131.07/15 per dollar, its
lowest close since Oct. 8 and slightly weaker from Tuesday's
close of 131.05/15.
Dealers said the rupee is under downward pressure due to
year-end importer demand for the greenback until mid December
and then could reverse the trend due to expected inflows from
foreign remittances by Sri Lankan expatriates during the festive
Analysts said the currency is under falling trend in the
long term due to lack of foreign inflows from exports and
foreign direct investments and the dollars keeping the rupee
steady were mainly from external borrowing.
Central Bank Governor Ajith Nivard Cabraal on Friday said
the rupee could come under pressure due to importer dollar
demand, for consumer-related goods ahead of the December
festival season, but the market could manage the demand "itself
without much intervention".
The rupee hit a record low of 135.20 on Aug. 28, but has
managed to stem further losses and is up 3.11 percent since
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand