Keheliya joins Rupee talk; Says will settle between 125 and 127

Wednesday, 6 June 2012 01:09 - - {{hitsCtrl.values.hits}}

Cabinet spokesman Keheliya Rambukwella yesterday became the latest to join a select group of officials to hint at where the Rupee was heading saying the exchange rate will stabilise around Rs. 125-127.

“As a Government, we believe that it will settle down in about six-months, between 125 and 127,” Cabinet spokesman Keheliya Rambukwella said, referring to the president’s remarks at the cabinet meeting.

He had told Reuters that the president, who is also finance minister, had told the cabinet on Friday that the government should be cautious on rumours that the rupee could hit the 150 level.

The rupee meanwhile strengthened yesterday to 130.50/60 against the dollar from Friday’s close of 131.00/20 on exporter dollar sales following a weekend media report saying President Mahinda Rajapaksa had told his cabinet that the government should take measures to stabilise the rupee without letting it depreciate further, dealers said.

Treasury Secretary Dr. P.B Jayasundera as well as Central Bank Governor Nivard Cabraal have hinted that the US Dollar exchange rate will be below or around Rs. 125 level.