ECONOMYNEXT – Sri Lanka rupee quoted firmer at 185.75/25 to the US dollar in the spot next market on Friday while gilt yields remained steady in the overall market, dealers said.
The rupee closed at 186.10/40 in the spot next to the US dollar on Thursday.
The spot rupee has not been quoted actively in forex markets in recent days.
The spot next (spot+ one day) was quoted around 186.50/70 to the US dollar on Thursday. A state bank was seen selling dollars around 186.60 levels, dealers said.
With excess liquidity at 235 billion rupees the potential pressure on the rupee is about 1.2 billion dollars if domestic credit continues to pick up, analysts say. It is unclear whether the surge in Coronavirus in October will contribute to a weakening of credit.
In the secondary securities market, bond yields remained steady in moderate market activity.
A 2-year bond maturing on 15.12.2022 was quoted at 5.73/78 per cent on Friday, down from 5.77/82 per cent at Thursday’s closing.
A bond maturing on 15.01.2023 was quoted at 5.80/85 per cent, down from 5.82/88 per cent at the previous day’s end.
A bond maturing on 15.09.2024 was quoted at 6.45/50 per cent, steady from 6.45/52 per cent at the previous day’s end.
A bond maturing on 01.05.2025 last closed at 6.55/70 per cent on Thursday.
A bond maturing on 01.02.2026 last closed at 6.75/80 per cent on Thursday.
A bond maturing on 15.08.2027 last closed at 7.10/20 per cent at yesterday’s end.
A bond maturing on 15.07.2028 last closed at 7.25/40 per cent on Thursday.