Sri Lankan Rupee Tumbles Most in More Than Four Decades
- Central bank’s Cabraal says 230/USD a guidance on rupee
- Flexible FX is positive for exporters, says CAL’s Jonas
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The Sri Lankan rupee posted its biggest single-day decline in more than 40 years, after a continued drain in the nation’s international reserves forced the central bank to relax its grip on the currency.
The currency slid 12% to a record low of 227.86 against the dollar, following the Central Bank of Sri Lanka’s move to effectively devalue the currency on Monday. The 12% decline was its biggest since Nov. 16, 1977, when the currency slumped more than 40%.