Rupee comes to a stand still as banks stopped quoting spot prices
June 26, 2012 12:17 pm  

The Sri Lankan rupee market came to a stand still today as banks stopped quoting spot prices against U.S. dollar, after what dealers said was a request from the central to stop trading the ailing currency beyond the 133 level. A dealer on condition of anonymity told Reuters, referring to the possible spot rate a day later, “The whole market is distorted as central bank does not like to see the spot trading above 133.00. So nobody is quoting spot and everybody quotes spot-next”. Governor of the Central Bank Ajith Nivard Cabraal has declined to comment. The rupee hit a record low of 133.60 on June 12. It has lost some 17 percent of its value since last November.

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