Convert USD to LKR
As an emerging market currency as well as a commodity currency, the Sri Lankan rupee sees considerable volatility. As a result, the USD/LKR currency pair can see significant price action and unexpected movements, making it a challenging pair to trade without experience.
Sri Lanka, as an agricultural economy, is susceptible to being impacted by natural disasters, which can serve to weaken the currency. In addition, political unrest can also weaken the value of the LKR. In such cases, the USD/LKR tends to trade bullish.
While both the US and Sri Lanka are consumers of crude oil, the US is also an exporter of crude oil and crude products. On the other hand, Sri Lanka only imports crude oil. As a result, any changes to crude oil prices have a higher impact on the LKR than on the USD. When crude oil prices fall, the Sri Lankan rupee strengthens and turns USD/LKR bearish, and vice versa.