Rupee gathers more strength

The Sri Lankan Rupee gathered more strength yesterday appreciating against the US Dollar between 3 and 5%.

As per the Central Bank, yesterday the Buying Rate of US dollar was Rs. 318.30, down by Rs. 16.20 or 4.8% from Friday’s closing. The selling rate was Rs. 335.75, down by Rs. 12.28 or 3.5% from Friday.

Last week saw the rupee appreciate by Rs. 22.48 against the dollar to Rs. 341.27 (average rate) from Rs. 363.75 in the previous week.

Wealth Trust Securities said the USD/LKR or rupee appreciated once again as its cash and spot contracts were traded within the range of Rs. 321 to Rs. 335 yesterday subsequent to the band been removed against its Fridays close of Rs. 336.17. 

The Rupee also got strength yesterday from President Ranil Wickremesinghe’s special statement in Parliament on progress of the $ 2.9 billion four year Extended Fund Facility program with the International Monetary Fund (IMF) as well as discussions with other multilateral donors such as the World Bank and the Asian Development Bank.

Analysts attributed last week’s appreciation to higher foreign inflows to the Government Securities market (Rs. 12 billion up from Rs. 7 billion in the previous week), as well as Listed equities along with improved inflows via tourism and workers’ remittances. The decline in current account deficit as well as trade deficit and improved Balance of Payment surplus boosted forex liquidity as well.

Central Bank Governor Dr. Weerasinghe on Friday revealed that CBSL mopped up $ 308 million from the FX market last week.