The Sri Lankan rupee hit a record low on Tuesday as banks and importers bought dollars, before recovering to close slightly weaker on selling of the US currency by exporters. The spot rupee, which traded at a record low of 154.20/25 per dollar during the day, ended at 154.05/15, compared with Monday's close of 154.00/10. "The pressure was there with demand (for dollars) from smaller banks. Some exporter selling came when the rupee hit 154.20/25 levels," said a currency dealer.
The rupee might witness volatility with the government's heavy debt repayment this year, said dealers. Sri Lanka raised $470.6 million on Thursday via development bonds, the central bank said, as the government faces unprecedented debt repayment this year. President Maithripala Sirisena's administration must repay an estimated 1.97 trillion rupees ($12.85 billion) in 2018 - a record high - including $2.9 billion of foreign loans, and a total of $5.36 billion of interest.
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