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Sri Lanka rupee gains to 191.50/192.00 to greenback as spot trading resumes

ECONOMYNEXT – Sri Lanka’s rupee closed around 191.50/192.00 to the US dollar after spot deals resumed late on Friday and bond yields eased, dealers said

The rupee was quoted around 194.20/195.00 in mid-morning in the one week forwards dealers said.

There have been moral suasion and interventions in the market in recent days.

Sri Lanka’s rupee closed around 194.60/195.10 in the one week forward market Thursday as the island sought a facility from the International Monetary Fund.

The rupee is under pressure due to excess liquidity. With export and import volumes falling, the proportion of excess liquidity compared to forex volumes are now much higher than before, putting further pressure, analysts say.

Liquidity in the overnight money market was 140.59 billion rupees, gaining from 84.94 billion rupees.

In the secondary government securities market gilt yields fell in active trade with high liquidity seen in the 2023 and 2024 maturities, dealers said.

A bond maturing on 15.12.2021 closed at 7.75/90 percent, stable from 7.75/95 percent.

A 2-year bond maturing on 01.10.2022 closed at 8.20/35 percent down from 8.40/47 percent.

A bond maturing on 01.09.2023 closed at 8.60/70 percent, down from 8.80/90 percent.

A bond maturing on 15.09.2024 closed at 8.95/9.05 percent down from at 9.02/9.06 percent on Thursday.

A bond maturing on 15.10.2027 closed at 9.30/40 down from 9.30/37 percent on yesterday’s close. (Colombo/ Apr17/2020)

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