Rupee strengthens to 140.45/65 on expected dollar inflows

Oct 07, 2015 (LBO) – Sri Lanka’s rupee has strengthened on Wednesday with dollar selling by a commercial bank on likely exporter proceeds and expected inflow of dollars, a dealer said.

The rupee was quoted against the dollar at 140.45/65 down from 141.00/05.

The central bank allowed greater flexibility of the exchange rate from 4th September amid a balance of payments deficit tied to dollar outflows.

Sri Lanka on Tuesday announced a ‘Comprehensive Partnership’ agreement with Japan with a pledge of 380 million dollars in loans to develop the airport and other infrastructure by Japan.

The rupee is now competitive against international currencies despite turbulence in international currencies and financial markets, the central bank governor said last week.