According to the Sri Lanka Forex Association, the rupee opened at Rs. 133.60/80 against the greenback and closed at Rs. 133.70/80.
"Exporter selling was absorbed by importers with the US dollar trading at an intraday low of Rs. 133.60 and a high of Rs. 133.90," it said.
"There is a definite slow down in importer demand. Essentials are still being imported but we are seeing a drop in demand for the fancy stuff. We believe the pressures on the exchange rate would ease, but the exchange rate would settle at around the present levels," a currency dealer said.
Meanwhile, dealers also said there was a marked fall in private sector credit growth with interest rates moving North and the Central Bank imposing an 18 percent cap on credit growth.
"We are seeing a huge slowdown in credit growth. Last month we saw a big reduction in lending," a currency dealer said.
Excess rupee liquidity in the banking system was around Rs. 21.8 billion yesterday.