Currency fluctuations: LKR weakens, gains against INR

According to yesterday’s (1) daily exchange rate sheet issued by the Central Bank of Sri Lanka (CBSL), the buying rate of the US Dollar stood at Rs 325.97, while the selling rate was recorded at Rs 335.70, indicating a slight depreciation of the Sri Lankan Rupee compared to last Friday (29 May), when the buying and selling rates were Rs 324.45 and Rs 334.24, respectively.

The Central Bank noted that, as of end-May, Sri Lankan Rupee had depreciated by 5.4% against the US Dollar on a year-to-date basis, reflecting heightened external sector pressures following the escalation of the Middle East conflict since late February. According to the CBSL, this depreciation is broadly in line with currency depreciation trends observed in peer economies.

Data released by the Central Bank also shows that the rupee has weakened against several major global currencies as of 29 May. The currency recorded depreciations of 11.5% against the Australian Dollar, 8.4% against the Chinese Yuan, 5.3% against the Sterling Pound, 4.7% against the Euro, and 3.7% against the Japanese Yen.

In contrast, the Sri Lankan Rupee appreciated by 0.8% against the Indian Rupee during the same period, making it the only major currency among those tracked by the Central Bank against which Sri Lankan Rupee recorded a gain.

Source: The morning