Sri Lanka rupee drifts lower against greenback

Feb 13, 2012 (LBO) – Sri Lanka’s rupee closed at 117.25/40 against the greenback Monday down from Friday’s close of 115.20/30 in a second day of trading without Central Bank intervention, dealers said. The rupee drifted lower in intra-day trading but recovered towards the end of the day.

Dealers said some exporters had cancelled forward contracts and importers were buying forward, creating tighter than normal conditions.

Sri Lanka allowed the rupee to trade without intervention from last Thursday after it lost more than a quarter of its reserves defending a dollar peg.

In capital markets, a 2013 bond closed at 10.55/65 percent. A two year bond maturing on 01.03.2014 closed at 11.30/35 percent and 01.08.2015 closed around 11.70/12.00, dealers said.

Stocks closed 2.2 percent lower with illiquid stocks which were heavily manipulated last year in particular taking a beating, brokers said.

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Corrected 01.08.15 bond, not 2014