Rupee fall temporary aberration, says Rajitha

The sharp fall in rupee is only a temporary aberration, Cabinet Spokesperson and Minister Dr. Rajitha Senaratne said.

“We have looked into the matter and we think it is an aberration in the market and we believe that it should settle down to a much more manageable level,” Minister Senaratne said at the weekly Cabinet briefing held at the Government Information Department yesterday.

The rupee hit a lifetime low of 141.00 on Tuesday. It has fallen 4.4% since the Central Bank effectively floated it on 4 September.

The market expects the currency to fall further in the short term if the Central Bank fails to tighten interest rates or the country does not see strong inflows soon, Reuters said quoting some dealers.