Sri Lanka rupee weakens

Mar 21, 2012 (LBO) – Sri Lanka’s rupee was quoted at 130.50/ 131.00 against the US dollar in mid-morning trade, weakening slightly from opening levels in the absence of state bank intervention, dealers said. “The rate dropped because there was no intervention,” said a dealer. “When there’s intervention the rate tends to pick. The intervention seen yesterday is not seen now.”

The rupee opened at around 129.60/ 129.90 , Wednesday.

The rupee had strengthened Tuesday after two state banks sold dollars to boost the local currency following its slump to a record low of 131.60 the day before.

Dealers have said there is strong importer demand for dollars ahead of the April traditional new year festive season.