A state bank rode into the foreign exchange markets once again on Thursday to champion the currency and prevent it from touching the 100.00 rupee mark against the US dollar.
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The rupee opened at 99.15 and stealthily rose to hit an all time mid-day high of 99.
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35 against the greenback.rn
rnBut state run Bank of Ceylon rose to the occasion once again and sold some of its dollar reserves to prop up the currency. rn
rnThe rupee closed at 99.00 against the greenback, though there was heavy import demand on slim volumes, dealers said.
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rnDealers said the greenback would keep rising in the run up to the April 2 polls, unless the Central Bank intervenes in the market. rn
rnUnder an IMF backed structural adjustment programme that is currently suspended, the Central Bank is committed to building up forex reserves. rn
rnAnalysts say this makes direct interventions difficult. During the last two years, Central Bank has bought dollars off the market.
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-LBO Newsdesk: LBOEmail@vanguardlanka.comrn
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