Sri Lanka rupee breaches 140 to US dollar in forex markets

ECONOMYNEXT – Sri Lanka’s rupee breached the 140.00 to the US dollar in the spot forex market Tuesday, dealers said as pressure was piled on the currency with fresh money printing over the week.

The rupee was traded as weak as 140.05 to the US dollar during intra-day trade against the greenback after opening at 139.70 levels.

A weaker rupee will inflate prices of imports and exports and bring more nominal taxes to cover state spending and help slash the real cost of a recent salary and pension hike.

Sri Lanka has monetized about 150 billion rupees of debt since June (printed money) and excess liquidity in money markets is about 82 billion rupees with the latest bought of printing. (Colombo/Sept15/2015)

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