Central Bank Governor Indrajith Coomaraswamy said on Tuesday that defending the rupee with foreign exchange reserves “doesn’t seem sensible” as it has always been followed by a sharp depreciation in the currency.
Two-week forwards were active and traded at 150.70/80, compared to the previous day’s close of 150.65/75 in the absence of one-week forwards, while spot-next forwards and the spot rupee were hardly traded, dealers said.
The rupee has been under pressure due to rising imports and net selling of government securities by foreign investors, they added.
Source: http://www.ft.lk/article/589998/Rupee-falls-on-importer-dollar-demand#sthash.vcNBODCs.dpuf