ECONOMYNEXT – Sri Lanka rupee closed firmer around 188.00/189.00 to the US dollar in the spot next market Monday with interventions after Christmas holidays, while bond yields were flat, dealers said.
On Thursday the rupee was quoted wide around 191/193 to the dollar.
The spot closed around 187.50/188.50 to the US dollar deals done around 188.00, dealers said.
Sri Lanka’s central bank said last week it would take the peg with the US dollar to around 185 rupees after the rupee weakened toward 193 to the US dollar.
“The Central Bank is of the view that the recent increase in volatility of the exchange rate is unwarranted and unacceptable,” the monetary authority said.
“Accordingly, among other measures, the Central Bank will take appropriate action aggressively hereafter to contain this volatility in the domestic foreign exchange market.
On Monday there was dollar selling around 188 levels market participants said.
In the secondary securities market, bond yields remained unchanged in dull market trade, dealers said.
A 2-year bond maturing on 15.12.2022 was quoted at 5.70/75 per cent on Monday, unchanged from last Thursday’s ending.
A bond maturing on 15.01.2023 was quoted at 5.72/75 per cent on Monday, steady from 5.73/80 per cent at Thursday’s end.
A bond maturing on 15.09.2024 was quoted at 6.40/48 per cent, down from 6.42/47 per cent at the last closing.
A bond maturing on 01.05.2025 was quoted indicative at 6.55/70 per cent, up from 6.50/65 per cent at Thursday’s end.
A bond maturing on 01.02.2026 was quoted flat at 6.75/85 per cent from the previous day’s end.
A bond maturing on 15.08.2027 was quoted flat at 7.15/25 per cent on Monday, from Thursday’s end.
A bond maturing on 01.07.2028 was quoted flat at 7.23/30 per cent, unchanged from the previous day’s end.
A 10-year bond maturing on 15.05.2030 was quoted at 7.65/85 per cent, down from 7.75/90 per cent at Thursday’s closing. (Colombo/Dec28/2020)