US dollar to stabilize

Ramani KANGARAARACHCHI

The US dollar is expected to stabilized below Rs125 soon after the festive season. Treasury Secretary P B Jayasundera said at a media briefing at the Finance Ministry yesterday. "At the moment we are confronted with the festive season's demand. Also wages are higher than the last year and the Maha season cultivation is in favourable to us. Therefore the stabilizing is likely to happen shortly after the new year festival.

"The rate would definitely stabilise below Rs125 because the initial adjustment to the currency's float and seasonal demand work its way out of the system,' he said. The rupee was expected to fluctuate after the initial float but would stabilize. The spot rate was 130.15, 130.30 against the green back with the local currency having opened at 129.90, 130.20. The rupee has fallen sharply against the dollar and other key international reserve currencies in recent days and had slumped to a record low of 131.60 against the dollar.