Dec 10 (Reuters) - The Sri Lankan rupee traded steady near a five-week high on Tuesday, led by inward remittances which outpaced the usual importer dollar demand, dealers said. The spot rupee was at 130.80/81 per dollar at 0611 GMT, hovering near a level last traded on Oct. 7. The currency has gained nearly 0.4 percent in seven straight sessions though Monday. Currency dealers said trading was dull as most traders were in a holiday mood and the central bank's policy rates decision had no impact on the currency. The central bank will only go in for limited intervention to prevent high volatility, Governor Ajith Nivard Cabraal said on Tuesday. "We maintain a flexible exchange regime and that policy automatically allows the rupee to adjust to the external factors," Cabraal told a Reuters Global Markets Forum. "It is only in instances where we believe that some intervention is needed to prevent volatility that we do so. That policy has served us well and we would continue with such policy." Cabraal said last week that the rupee was expected to remain steady at current levels with most inflows being remittances. Currency dealers said the rupee was facing upward pressure as expatriates were sending money for their families ahead of Christmas and the New Year. The rupee has gained 3.4 percent since it hit a record low of 135.20 on Aug. 28. At 0615 GMT, Sri Lanka's main stock index was down 0.39 percent, or 22.47 points, at 5,798.83. (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

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