Sri Lanka forex markets in a spot

June 26, 2012 (LBO) – Sri Lanka’s spot foreign exchange markets were inactive Tuesday with no two way quotes following earlier regulatory pressure, though the market for transactions with settlement three days ahead, became active, dealers said. So-called ‘spot’ market deals are settled two days later. ‘Spot next’ or deals settled three days later, were quoted at around 133.80/134.40 rupees to the US dollar Wednesday.

On Monday the spot market became inactive following regulatory pressure on Friday, dealer said. The spot dollar weakened to near record lows though a state bank was selling around 132.90 rupees, dealers said.

The rupee has officially fallen to around 133.60 levels earlier in June.

On Wednesday the spot next market became active though there was no apparent pressure to reverse any deals done on Monday, dealers said.