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Sri Lanka Eases Grip on Rupee as Emerging Currencies Show Strain

  • Rupee weakens the most since March 2012 to record low
  • Move to let market play "greater role" in determining FX rate
Updated on

Sri Lanka loosened the grip on its currency, becoming the latest country to signal it was giving way to the stress that’s engulfing developing economies as the U.S. moves closer to raising interest rates.

The Colombo-based central bank will no longer give a daily intervention rate from Friday “to let the market play a greater role in determining the exchange rate,” Deputy Governor Nandalal Weerasinghe said in a telephone interview. The rupee fell the most in more than three years.