US Dollar Selling Rate Drops Below Rs. 340 Following Sharp Spike
The selling rate of the US Dollar eased below Rs. 340 on Thursday after recording a sharp surge in the local foreign exchange market earlier this week, bringing temporary relief to businesses and consumers affected by rapid currency fluctuations.
Commercial banks quoted lower dollar selling rates during Thursday’s trading session after the currency climbed to some of its highest levels in recent months on Wednesday. The dollar had briefly approached Rs. 354 at certain banks amid heightened demand for foreign currency and increased market volatility.
By Thursday afternoon, several leading banks reported reduced selling rates, with Bank of Ceylon quoting the dollar at Rs. 336.50, while People’s Bank and Nations Trust Bank also recorded rates below Rs. 339.
Currency analysts attributed the recent volatility to a combination of global and domestic pressures. Internationally, the strengthening of the US Dollar has been driven by geopolitical uncertainty, rising oil prices, and investor movement toward safe-haven assets. Emerging market currencies across the region have also experienced pressure as global financial conditions tightened.
Locally, increased importer demand for foreign currency and speculative activity in the market contributed to the sudden depreciation of the Sri Lankan Rupee during recent trading sessions.
The movement of the dollar continues to carry significant implications for Sri Lanka’s import-dependent economy. A stronger dollar raises the cost of imports including fuel, pharmaceuticals, raw materials, and consumer goods, increasing financial pressure on businesses and households.
At the same time, exporters and remittance earners may experience some benefit from improved rupee conversion values for foreign currency earnings.
Financial sector observers noted that while Thursday’s easing suggests some degree of market correction, exchange rate volatility is likely to remain sensitive to global economic developments, foreign inflows, and domestic market sentiment in the coming weeks.