Sri Lanka rupee trades around 194.00 to greenback, bonds steady

ECONOMYNEXT – Sri Lanka’s rupee saw trades in the spot market around 194.00 to the US dollar in intra-day trades Monday, down from 192.20/193.00 at close on Friday, dealer said, while one weeks were also quoted around the same levels.

One week dollars were quoted around 193.75/194.50 to the US dollar in mid-day trade Monday in the one week forward market from around 193.50/194.50 Friday.

Sri Lanka’s rupee closed around 192.20/193.00 to the US dollar on interventions in the spot market Friday while more money was printed data showed.

On Monday the central bank said banks were buying dollars from telegraphic transfers at 189.69 rupees and selling at 196.07.

If money is printed the central bank has to sell dollars to prevent the peg with the US dollar from falling. Selling dollars mops up excess liquidity and tends to push up short term rates.

There was demand for bond despite a downgrading by Fitch of Sri Lanka’s sovereign rating from ‘B’ to ‘B’, dealers said.

In bond markets gilt yields remained stable amidst moderate trade with high liquidity seen in 2024 maturities, dealers said.

A bond maturing on 15.12.2021 was quoted at 7.45/60 percent on Monday.

A 2-year bond maturing on 01.10.2022 closed at 8.08/18 percent up from 8.05/15 percent, on the Friday’s close.
A bond maturing on 01.09.2023 closed at 8.30/40 percent.

A bond maturing on 15.09.2024 closed at 8.73/78 percent on Monday up from 8.65/75 percent.





A bond maturing on 15.10.2027 closed at 8.98/9.03 percent up from 8.95/9.00 percent at Friday’s close. (Colombo/ Apr27/2020)

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