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Rupee depreciates by over 7.4% this year

25 Dec 2020

The Sri Lankan rupee (LKR) has recorded a depreciation rate of about 7.4% so far this year, as it has been hovering above 190 levels against the US dollar, this week. The rupee has been depreciating gradually for the fourth consecutive day this week, and the selling rate of a US dollar was recorded at 194.66 yesterday (24) compared to 193.05 a day before (23), according to Central Bank of Sri Lanka (CBSL) data. Yesterday’s rate was the lowest since 14 May. For the first time in six months, the rupee surpassed 190 against the US dollar on 18 December and since then, it has been gradually depreciating. On Monday (21), Tuesday (22), and Wednesday (23), the rupee was 190.37, 191.20, and 193.05, respectively, against the US dollar.   During the period from 15 May to 17 December, the rupee was hovering around the range of 186-189 against the US dollar. The currency started the year at Rs. 181.15 and witnessed a slight appreciation during the first couple of days. However, during the month of January, it depreciated by 0.04%. On 1 February, the LKR was at Rs. 181.40 and fluctuated throughout the month, yet remained below Rs. 182. During the period from 1-29 February, it depreciated by 0.22%. The monthly depreciation rate of the LKR escalated alarmingly in March, with it dropping to Rs. 189.25 to the US dollar on 27 March from Rs. 181.92 on 1 March. During the initial week of the lockdown alone, the rupee recorded a significant drop of 1.2%, hitting Rs. 189.25 against the US dollar. Since then, the rupee remained well above 190 against the US dollar until 15 May. The lowest value the rupee hit this year was 200.4 against the US dollar on 8 and 9 April.


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