Sri Lanka rupee falls to new low

Mar 13, 2012 (LBO) – Sri Lanka’s rupee was quoted at a new historic low of 123.45/60 against the spot US dollar in late trading Tuesday dealers said. The rupee opened around 121.80 to the US dollars.

Analysts had warned that continued liquidity injections in to money markets to sterilize off-market forex interventions will result in a steady weakening of the currency peg.

One month forward premium was around 1.10/20 rupees, the three month around 5.00/5.10 and the one year as much as 9.35/80 earlier in the day, dealers said.