Sri Lanka rupee opens firmer against dollar

Mar 26, 2012 (LBO) – The Sri Lankan rupee opened firmer against the US dollars Monday but weakened slightly later in the morning, dealers said. It had slumped to a record low of 131.60 Monday, March 19 owing to importer demand for greenbacks for the forthcoming April traditional new year festive season.

Treasury secretary P B Jayasundera said last Thursday he expects the rupee to recover to around 125 to the US dollars after seasonal demand ahead of the April new year eases. The spot dollar was quoted at 130.20 / 130.50 rupees in mid-morning trade having opened at 129.90/ 130.20 with no sign of state bank intervention.

The rupee closed slightly firmer on Friday with thin inflows from worker remittances and low demand for dollars from importers.

The rupee has fallen sharply against the dollar and other key international reserve currencies in recent days.