Dealers said the rupee gained amidst thin volumes of export conversions and dollar sales by banks.
A liquid five year bond was trading at 11.37/40 percent after opening at 11.47/60, driven by domestic investor sentiment, dealers said.
Money market rates hit a 20 month low yesterday with the overnight call money rate (for interbank borrowings not backed by gilt) reaching 8.30/35 percent and the repo rate (for gilt-backed interbank borrowings reaching 7.70/75 percent).
The benchmark Colombo All Share Price Index closed 9.95 points lower at 5,947.42, down 0.17 percent, after reaching an intraday high of 5,969.68, provisional data showed.
The S&P SL20 closed 3.29 points lower at 3,283.62, down 0.10 percent.
Turnover amounted to 1,020.88 million rupees, up from 575.09 million rupees a day earlier, with shares of 110 firms making losses against 67 that gained.
Foreigners bought shares worth 246.98 million rupees, up from 225.82 million a day earlier, and sold shares worth 18.32 million rupees, down from 60.11 million rupees the previous day.
JKH closed flat at 215.00 rupees and features in three crossings and HNB closed flat at 150.00 rupees with two crossings.
Lanka IOC closed 10 cents lower at 25.00 rupees and featured in a single crossing. Commercial Bank closed 40 cents higher at 119.30 rupees and Sampath Bank closed 60 cents higher at 174.00 rupees.
Lion Brewery closed 13.90 rupees higher at 374.90 rupees and Ceylon Beverages Holdings closed 41.30 rupees higher at 541.30 rupees.
NDB Capital Holdings closed 23.80 rupees higher at 485.00 rupees and Commercial Leasing and Finance closed 20 cents higher at 4.20 rupees.
Royal Ceramics closed 5.50 rupees higher at 95.00 rupees.
Asian Hotels and Properties closed 5.00 rupees lower at 70.00 rupees.
Nestle Lanka closed 27.00 rupees lower at 1,945.40 rupees and trans Asia Hotels closed 4.30 rupees lower at 84.70 rupees.
DFCC Bank closed 2.90 rupees lower at 121.10 rupees and Cargills Ceylon closed 2.90 rupees lower at 151.00 rupees.
Speculative play continued in Touchwood closing 10 cents higher at 4.80 rupees with more than 5.1 million shares changing hands.
Access Engineering, closing 30 cents higher at 22.00 rupees, saw more than 21.14 million shares change hands.
PC House, closing flat at 80 cents, saw more than 6.12 million shares traded.
Laugfs Gas closed 50 cents lower at 27.00 rupees and saw more than 2.97 shares change hands in a single crossing. the shares were purchased by the parent company, Laugfs Holdings Ltd, a stock exchange filing said.