The Sri Lankan rupee hit a record low of 158.20 per dollar on Tuesday after the central bank chief said the currency will depreciate gradually, while exporters stayed away from the market expecting further weakness. The spot rupee ended at 158.10/30 per dollar, compared with Monday's close of 157.95/158.10. Dealers, however, said the market switched to rupee forwards as buying dollars for spot rupee was very difficult amid worries that the central bank could take actions against possible market manipulations.
The one-month rupee forwards traded at as low as 159.00 per dollar, dealers said. The rupee will depreciate gradually as dollar outflows surpassed inflows, Central Bank Chief Indrajit Coomarswamy said on Friday. "There were flows today but the sellers are very reluctant to sell (dollars) with globally the dollar is strengthening," a currency dealer said.
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