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Sri Lanka rupee stronger against greenback in one week market

ECONOMYNEXT – Sri Lanka’s rupee was quoted stronger against the US dollar in one week forwards, and there were no spot market deal while bonds yields were lower at open dealers said, and the stock market continued to be closed.

The rupee was quoted around 194.20/195.00 in mid-morning trade Friday, dealer 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 yesterday 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.

In the secondary government securities market gilt yields fell in active trade with high liquidity seen in the 2022, 2023 and 2024 maturities, dealers said.

A bond maturing on 15.12.2021 was quoted 7.70/85 percent, down from 7.75/95 percent.

A 2-year bond maturing on 01.10.2022 was quoted at 8.25/30 percent down from 8.40/47 percent.

A bond maturing on 01.09.2023 was quoted at 8.75/80 percent, down from 8.80/90 percent.

A bond maturing on 15.09.2024 was quoted at 8.90/97 percent down from at 9.02/9.06 percent on Thursday.

A bond maturing on 15.10.2027 was quoted at 9.25/35 down from 9.30/37 percent on yesterday’s close. (Colombo/ Apr17/2020)

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