Sri Lanka’s rupee closed at 336.35/40 against the US dollar in Wednesday’s spot trading, a marginal improvement from the 336.35/50 level recorded the previous day.
Dealers reported that government bond yields remained broadly steady throughout the session, indicating a lack of fresh selling pressure in the fixed-income market.
The currency’s stabilization follows a period of fluctuation, with the rupee finding support after three consecutive sessions of depreciation earlier in the week.
The narrow trading range suggests that market participants are currently digesting recent moves rather than positioning for further immediate volatility.
This steadiness in the FX market aligns with broader signs of absorption in the domestic debt market.
Earlier on Wednesday, Sri Lanka successfully absorbed its full Rs140 billion Treasury bill auction, with yields dipping on strong demand.