The Sri Lankan rupee weakened further against the US dollar on Friday, with selling rates at major commercial banks touching Rs. 325 — the weakest level since the appreciation cycle that began in March.
Newswire reported counter-rates of Rs. 325 selling at Seylan Bank (buying Rs. 317.25), Rs. 324.50 at NDB Bank (buying Rs. 318), Rs. 325.11 at People’s Bank (buying Rs. 318.10), Rs. 325 at Commercial Bank (buying Rs. 316.53) and Rs. 324.75 at Sampath Bank (buying Rs. 318.25).
EconomyNext reported the rupee was quoted at 321.80/90 to the dollar in the spot interbank market, weaker than 321.70/85 the previous day, while bond yields were broadly steady. Telegraphic transfer rates moved to 318.30 buying and 325.30 selling, with the British pound at 430.55/441.99 and the euro at 371.04/382.59.
The slide extends a depreciation trend that has been visible across the past week, after the rupee had appreciated from the Rs. 330+ range earlier this year to a Rs. 319-321 band by April. The Friday level represents the weakest selling rate since that recovery began.
The Colombo Stock Exchange tracked the move, with the All Share Price Index down 0.20 percent at 22,952 and the S&P SL20 down 0.04 percent at 6,289 by mid-morning.
The renewed rupee weakness has begun feeding into consumer prices. Pharmacists warned of medicine shortages earlier this week, citing the rupee’s depreciation against price controls that have not been adjusted to reflect the higher import cost of essential drugs.
Sources: Newswire; EconomyNext.
