Sri Lanka’s rupee falls to near 200.75 to US dollar: Report

COLOMBO: Sri Lanka’s rupee fell to near 200.75 to the US dollar in the spot next market Tuesday, while on week dollars were quoted around 199/201 rupees, dealers said as excess liquidity dropped amid reserve outflows.

The rupee last closed in the one- week forward market at 198.00/199.00 to the US dollar on Monday.

Rupee last hit close to 200 to the dollar in March 2020.

Meanwhile, the spot/three month swap traded at over 1.75 rupee discount, market participants said.

Amid record money printing and low rupee yields driven by so-called Modern Monetary Theory, Sri Lanka’s forward premiums inverted late last year, despite running the biggest balance of payments deficit in the country’s history, Economy Next reported.

Meanwhile, Sri Lanka stocks fell 0.57 percent for the second day of the week on Tuesday on index Hayleys, Expolanka Holdings and LOLC Holdings pushing the ASPI down, brokers said.

Turnover was 1.2 billion rupees with 39 stocks gaining and 118 falling, Economy Next reported.

The Colombo benchmark All Share Price Index fell 40.71 points to close at 7,119.70.