Sri Lankan rupee hits record low of 123.20

Sri Lanka’s rupee hit a new record low of 123.20 on Tuesday on importer dollar demand, but a state bank sold greenbacks to reverse the drop in an apparent break with the central bank’s new policy not to intervene at a specific price, dealers said. “A state bank sold dollars at 123.00 and gradually brought down the level to 121.00,” a currency dealer said on condition of anonymity. Three other dealers confirmed the move. Some dealers said the central bank has asked currency dealers to bring the trading level to 121.00 via moral suasion, a method of coercing the market to move in line with the monetary authority’s desires without direct force.