Sri Lanka forex markets inactive

Apr 26, 2012 (LBO) – There were no deals in Sri Lanka’s forex markets Thursday and quotes have also dried up pending a meeting of bank Treasurers with the Central Bank, market participants said. Monetary policy also loosened in April due to seasonal deficit financing, which has tended to put pressure on the dollar peg even in past years.

Bank Treasurers are expected to meet the regulator at 11.30 am and the market is expected to start later.

At open there were isolated quotes ranging from 131.50/132.50 and 130.20/131.20 to the US dollar but they dried up later, dealers said.

The rupee fell to a record low of 133.50 to the US dollar Wednesday before recovering to close at 131.65/132.00 levels following sales by a state bank.

Central Bank Governor Nivard Cabraal said Wednesday that some speculative deals were being probed.

Sri Lanka’s rupee has come under pressure from high credit growth.