Rupee under appreciation pressure at the moment: CB

The Sri Lankan rupee, which hit a record low at the end August, is under appreciation pressure and the Central Bank has been intervening to curb a sharp rise, the Central Bank Governor said yesterday.

The rupee has been trading at more than a threemonth high of 130.70/75 to the dollar, after having appreciated 3.42 percent since it hit a record low of 135.20 on August 28.

“There is actually more appreciation pressure than depreciation pressure at the moment,” Governor Ajith Nivard Cabraal told Reuters.

“The Central Bank is intervening when it thinks the rupee is appreciating too much.”

Currency dealers said inflows into the share market and government bonds amid weak importer dollar demand had helped boost the currency.

Some dealers had expected the currency to come under downward pressure after the Central Bank cut key policy interest rates to multi-year lows last week.

(REUTERS)