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Sri Lanka rupee recovers on state bank selling

Feb 28, 2012 (LBO) - Sri Lanka's which was quoted as low as 122.
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50/123.00 against the US dollar in early trade Tuesday recovered on state bank dollar sales which pushed the rupee to 121.
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00 levels, dealers said. The rupee recovered to 121.30/50 rupees later.

The rupee was floated earlier in February after it came under pressure from strong credit demand.

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Authorities have since tightened monetary policy and also raised fuel prices to cut borrowings by state enterprises.

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In money market gilt backed repos were around 8.65/75 percent and call money at 9.


65/75 percent, dealers said.

.

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