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FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Sri Lanka rupee extends gains

Sri Lanka rupee extends gains

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1Sri Lanka rupee extends gains Empty Sri Lanka rupee extends gains Mon Jul 23, 2012 10:18 am

Malika1990

Malika1990
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
July 23, 2012 (LBO) - Sri Lanka's rupee rose to 130.90/131.05 levels against the US dollar Monday extending earlier gains with inflows as monetary policy remained in favour of a stronger rupee, dealers said.

Some inflows to bond markets were also not bought the monetary authority helping keep upward pressure on a rupee peg.
Dollars bought by the Central Bank creates is taken out of the market and instead rupees are created in the economy, weakening the currency peg.

In money markets overnight repo rates were at 9.60/70 percent levels and un-backed call money was quoted around 10.50/60 percent dealers said.
http://www.lbo.lk/fullstory.php?nid=1548927126

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