Sri Lanka rupee ends lower after state bank raises dollar peg
The Sri Lankan rupee ended weaker on Thursday as a state-run bank, through which the central bank usually directs the market, raised the currency’s peg against the dollar by 25 cents to let the exchange rate depreciate to 133.75, dealers said.
Dealers said exporters sold dollars after the move, while demand for the greenback from importers was also seen.
“Not clear what the intention is (of raising the peg), but it should go up with the import pressure,” said a currency dealer asking not to be named.
One of the two state-owned banks started to sell dollars at 133.75, ending two straight sessions when the rupee closed steady, they said.
The rupee closed at 133.75 on Thursday.
On Monday, the state-owned bank had cut the currency’s peg to the dollar by 10 cents to 133.50.
(Reuters)
Latest Headlines in Sri Lanka
- PUCSL warns CEB: Submit tariff plan by December 6, 2024 or face action November 25, 2024
- ADB approves $200 million to modernize Sri Lanka’s power sector November 25, 2024
- Over 120,000 tourists arrive in Sri Lanka in first 20 days of November 2024 November 25, 2024
- Court orders release of Sujeewa Senasinghe’s SUV on Rs. 100 million bond November 25, 2024
- IMF backs Sri Lanka’s plan to boost revenue with vehicle imports November 25, 2024
