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Sri Lanka rupee steady after volatile week

April 24, 2009 (LBO) - The rupee weakened to 120.
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70 levels against the US dollar, with a foreign bank on the buying side Friday, but recovered later in the day ending a week that saw the domestic currency fall about four rupees, dealers said. In late afternoon trade the spot dollar was quoted at 120.
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0/30 levels after opening at 120.
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30/60 rupees.

Dealers said state bank activity was muted, though they bought dollars a day earlier just under 120.

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00 rupees.

The rupee is floating with no central bank intervention ahead of an International Monetary Fund bailout in May.

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Sri Lanka's central bank governor Nivard Cabraal and a team of government officials are now in Washington to hammering out the final details of a deal, while attending the annual meeting of the Fund and World Bank.

The rupee opened 116.00/20 against the greenback Monday and rapidly weakened toward 120.

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00.

The rupee is emerging from more than seven months of peg defence that has lost the country more than two thirds of its foreign reserves.

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Active exporter selling is still not evident in the market indicating expectations of further adjustment.

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The rupee fall comes as imports collapse and the trade deficit narrows rapidly.

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Updated

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