Sri Lanka rupee recovers on state bank selling

Feb 28, 2012 (LBO) – Sri Lanka’s which was quoted as low as 122.50/123.00 against the US dollar in early trade Tuesday recovered on state bank dollar sales which pushed the rupee to 121.00 levels, 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.

.