COLOMBO: Sri Lanka's rupee dropped a more than six-month low in the intraday trade on Friday as foreign investors sold bonds as part of a broader sell-off in emerging markets on fears that loose global monetary conditions were about to end.
The rupee hit 129.00/129.10 per dollar, its lowest since Dec. 4, falling 0.77 percent from Thursday's close of 128.00/10. It has fallen around 2 percent so far this week.
Two dealers said the lowest deal was done at 129.05.
"Rupee is weakening on demand for dollars from foreigners who are selling rupee bonds," a currency dealer said on condition of anonymity.
Regional markets have been rocked by uncertainty on whether the US Federal Reserver would dial back its massive stimulus later this year, forcing investors to cut back on assets seen as risky.
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