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Sri Lankan rupee slips to 113.90/114.00 to the dollar

Jan 02, 2008 (LBO) - The Sri Lankan rupee lost ground Friday and closed the first week of 2009 at 113.
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90/114.00 against the greenback, dealers said.
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The rupee opened the day at 113.10/20 to the dollar.

Dealers said a large import bill was settled through state bank.

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They said the market largely ignored news of the military capturing the Tamil Tiger-held northern town of Kilinochchi.


The rupee had been pressured by central banks sterilized intervention activities since mid-September but in December liquidity turned excess worsening the pressure to depreciate.

Earlier in the week, the central bank also cut overnight dollar positions of banks, reducing the leeway for market making, which would also make the rupee more volatile.

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