COLOMBO: The Sri Lankan rupee closed slightly weaker on Tuesday on light importer dollar demand, but the currency is expected to trade in a narrow range until the market sees direction from an IMF loan tranche disbursement and sovereign bond sale, dealers said.

The rupee forwards were active, with two-week forwards closing at 153.25/30 per dollar, weaker from Monday’s close of 153.10/20. “The rupee will be steady between a narrow range of 153.10-153.40 until we see some direction. We don’t see any depreciation pressure now,” a currency dealer said, asking not to be named.

The IMF is yet to approve the third tranche of a $1.5-billion loan, and the market expects the approval to help boost sentiment.—Reuters