Sri Lanka rupee hits record low on importer dollar demand

 Wed Jun 27, 2012 

(Reuters) - The Sri Lankan rupee hit a fresh record low of 134.00 to the dollar on Wednesday on importer demand for the U.S. currency, sparked by worries the local unit will weaken further after banks started quoting spot prices again for the local unit.

Several banks had stopped quoting spot rates for the rupee in the previous two sessions after what dealers said was a request by the central bank not to trade above 133.00, in a bid to halt a months-long slide.

On Wednesday, several banks quoted spot prices around the rupee’s previous record-low level of 133.60, hit on June 12, dealers said.

“The highest deal was done at 134 for the spot and there is importer demand for dollars,” a currency dealer said on condition of anonymity.

Three other dealers confirmed the highest deal, while some banks said they had still not started quoting spot prices.

The rupee has lost nearly 18 percent of its value since November, when the government allowed a 3 percent devaluation.

The central bank on May 31 said it still believed the battered rupee would stabilise at levels stronger than 125 to the dollar. (Reporting by Shihar Aneez; Editing by Chris Gallagher)

Posted by Thavam