Sri Lanka rupee opens weaker

Feb 28, 2012 (LBO) – Sri Lanka’s rupee was quoted as low as 122.50/123.00 against the US dollar in early trade Tuesday weakening from Monday’s close of 121.30/50 rupees, before recovering, dealers said. The rupee recovered to 121.30/50 rupees later.

The rupee was floated earlier in February after it came under pressure from strong credit demand.

Authorities have since tightened monetary policy and also raised fuel prices to cut borrowings by state enterprises.

In money market gilt backed repos were around 8.65/75 percent and call money at 9.65/75 percent, dealers said.