Sri Lankan rupee strengthens vs dollar

Sri Lanka’s rupee currency, which had an all-time closing low on Tuesday, initially weakened further on Wednesday but then strengthened as state banks sold dollars. The rupee was trading at 119.80/120.00 to the dollar, compared with on Tuesday’s close of 120.20, after a day of heavy forward bookings of dollars by importers. The currency has been volatile since the central bank on Feb.9 stopped intervening in the foreign-exchange market to defend a specific level. Three dealers said that on Thursday, the rupee was traded as weekly as 120.90 rupees in early trade, then strengthened to 119.80 on sales of dollars by state banks.