Sri Lanka forex market subdued

Apr 26, 2012 (LBO) – Sri Lanka’s forex markets were subdued with isolated quotes after the conclusion of a meeting of bank treasurers with Central Bank officials, market participants said. Dealers said there were tentative offers and 129.

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50 levels to the US dollar but no active trading in late afternoon trade dealers said.

The meeting was cordial with issues such as speculation, inflows and exporter sentiment and volatility of the exchange rate being discussed.

Interbank forex markets were inactive Thursday after a bank treasurers were called for a meeting a day after the central bank said some dealers were being probed for taking positions without underlying transactions.

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The market lost depth after net open positions were cut by the regulator which tends to make the exchange rate more volatile.

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