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Sri Lanka rupee hits new low

Apr 24, 2012 (LBO) - Sri Lanka's rupee hit a new low of 132.
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20 against the US dollar in the spot market mid-morning trade Tuesday dealers said, as money markets remained liquid and overnight interest rates were below a recently hiked policy rate.
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The rupee was quoted at 132.10/40 in mid-morning trade after opening around 131.
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50/80 dealers. The rupee closed around 131.35/55 Monday.

Money markets were liquid gilt-backed repos quoted at 8.

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45/50 percent levels and call money at 9.25/50 percent.

The overnight rates are below the recently hiked 9.

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75 percent reverse repo rate as banks were had excess liquidity close to 30 billion rupees over the past several days.

Excess liquidity can come from Central Bank purchases of foreign exchange which by pass the market.

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