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Sri Lanka rupee strengthens below 110 to greenback

Apr 28, 2011 (LBO) - Sri Lanka's rupee strengthened to below 110 to green back as the dollar slid to record lows against currencies issued by other monetary authorities with higher interest rates, dealers said.
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The spot dollar was quoted around 109.90/95 in mid morning trade. The Australian dollar, rose to a 29-year high against the US dollar at 1.
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09, and the Euro hit a 17 month high above 1.48.

The dollar has been sliding against other paper currencies and real commodities, with gold now around 1,500 US dollars an ounce.

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Dollar pegged countries have been hit by high inflation as commodity prices including food and energy rose.

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The dollar weakened further as Fed chief Ben Bernanke said he would continue exceptional money printing activities until June.

"The trade-offs are getting -- are getting less attractive at this point," he said.

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Fed chief Bernanke maintains that volatile food and energy prices are not 'inflation'.


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