Sri Lanka’s rupee depreciated against the US dollar in Tuesday’s spot trading, with dealers quoting the currency at 336.30/50.
The move marks a reversal from the previous day’s level of 336.00/20, signaling a return of selling pressure after a brief period of stabilization earlier in the week.
Local bond yields also edged higher during the session, reflecting continued caution among investors in the island nation’s debt markets.
The simultaneous weakness in the currency and rise in borrowing costs suggest that underlying macroeconomic vulnerabilities remain unresolved, despite earlier signs of resilience.
The rupee’s slide follows a volatile period where the currency had briefly strengthened to 335.75/90 on Friday before retreating.
This back-and-forth movement highlights the fragility of the recent stabilization trend, as external factors—including global oil price volatility and regional geopolitical tensions—continue to weigh on emerging market currencies in the region.