Rupee gains: Boost in confidence
View(s):The settlement of a US$1billion + debt repayment by the Government last month has restored confidence in the money markets, easing pressure on the rupee.
The rupee which was once pegged at a high of Rs. 184 per US dollar, a few weeks ago, has gained against the US currency and was trading at around Rs. 176-Rs. 178 this week.
The other reasons for a ‘more, relaxed rupee” is that inflows in the debt market (bond sales) have improved while exporters are bringing back their export earnings. “With the rupee gaining against the dollar, there is no reason for exporters to hold back their proceeds,” one money market dealer said.
Sri Lanka has to pay over $5 billion in debt payments this year and the Central Bank and the Government have announced plans on money being raised by loans and bonds to settle these payments.