ECONOMYNEXT – Sri Lanka’s rupee fell to a new low of 140.40/50 against the US dollar in the spot forex market Wednesday in morning trade down from yesterday’s close of 140.15/30 dealers said, amid excess liquidity from debt monetization.
The rupee traded as low as 140.40 to the US dollar in mid-morning trade after opening wide and 140.10/40 levels, dealers said.
The rupee has been free falling from September 04, when the rupee was 134.75 to the US dollar, after the Central Bank ended heavy interventions and continued to pump fresh money into the banking system pressuring the rupee.
There has also been dollar purchases the monetary authority since September 14.
A falling rupee can cut the real wages which were increased recently and help manage the budget by inflating nominal revenues. (Colombo, Sept16/20150)