Sri Lanka Rupee off Exact Peg, To Follow a More Flexible Exchange Rate

23rd November 2009, www.lankabusinessonline.com

Sri Lanka rupee closed weaker against the US dollar at 114.40/50 Monday after opening stronger under a more flexible exchange rate adopted by the Central Bank, dealers said.

The spot dollar opened at 114.25/30 rupee levels against the greenback Monday and peaked to around 114.50/60 level in intra-day trading, dealers said.

Central Bank governor Nivard Cabraal has said that the rupee may not follow an 'exact peg' like in the past, where the monetary authority held the currency at 114.80 levels for most of the year.