Sri Lanka’s rupee traded at 335.60/70 against the US dollar in Monday’s spot market, maintaining a level largely unchanged from the previous session.
Local bond yields also retreated lower, according to dealer reports, suggesting a brief respite in selling pressure across the island’s financial markets.
The currency’s stability marks a continuation of the modest stabilization trend observed over the past few trading days.
The rupee had previously improved from a 336.00/30 level to 335.75/90 on Friday, following a period of weakness that saw it slide to 336.30/40 earlier in the week.
The current bid-ask spread indicates that market participants are cautiously holding positions rather than aggressively betting on further depreciation.
The simultaneous drop in bond yields reinforces the view that immediate liquidity stress in the local debt market has eased.