Sri Lanka, May 25 -- The selling rate of the US dollar at several commercial banks dropped below Rs. 340 at the close of interbank transactions today (22), following sharp volatility in the foreign exchange market over recent days.

The Sri Lankan rupee, which had been under pressure and depreciating rapidly against the US dollar, showed signs of recovery during trading today. The highest selling rate was recorded yesterday (21), when the US dollar climbed to Rs. 354, reflecting a sharp increase of Rs. 12 compared to the previous day. Market observers attributed the fluctuations to heightened demand for foreign currency and changing market sentiment in the banking sector.

Published by HT Digital Content Services with permission from Dail...