Sri Lanka’s rupee depreciated against the US dollar in Tuesday’s spot trading, closing at 335.15/40.
The currency weakened from the previous day’s close of 334.50/75, marking a modest slide in value.
Dealers reported that the move was contained, with no sharp volatility disrupting the session.
Dealers reported that the move was contained, with no sharp volatility disrupting the session.
Domestic bond yields remained broadly steady throughout the day, indicating that fixed-income investors are not yet pricing in immediate monetary tightening or heightened default risk.
The stability in the debt market suggests that the recent currency softening has not triggered a broader loss of confidence in local sovereign paper.
The currency’s weakness arrives as inflationary pressures show signs of reacceleration.