Rupee could appreciate to Rs.310 against USD by first half of 2024: FCR

The Sri Lankan rupee could appreciate to Rs.310 against the US dollar by the first half of this year, mainly due to the depressed consumer spending, owing to the higher taxes, First Capital Research (FCR) said. 
“On the currency, we are a bit of looking of an appreciation because the increased taxes will sort of stagnate the consumer demand, in slowing down imports. There’s already been a Rs.5-6 appreciation and that trend will continue during the first quarter of the year, until the consumer demand picks up. During the first half, it can even come down to Rs.310 against the US dollar,” FCR Chief Research and Strategy Officer Dimantha Mathew told Mirror Business.
However, he noted that the rupee could deprecate to the Rs.320-340 range, based on the pickup in consumer demand.
“The second half of the year, we are looking at a range of Rs.320-340. It could reach Rs.340, if the economy really accelerates,” he added.
As per the Daily Indicative Exchange Rate, as of last Friday, the USD/LKR exchange rate stood at Rs.319.15. (NF)