Sri Lanka rupee weakens on low volumes, markets calm after Easter carnage

ECONOMYNEXT – Sri Lanka markets were calm Monday following the carnage on Easter Sunday with the rupee weakening to 174.75/85 rupees against the US dollar and bond yields gaining amidst low trading volumes, dealers said.

Easter Sunday’s bombings at several churches and hotels left 290 dead and over 500 injured.

The Sri Lanka rupee weakened to 174.90 rupees against the US dollar in early trading, but later eased to 174.75/85 rupees by midday against the greenback. 
"The market is relatively calm and there doesn’t seem to be any panic-trading after Sunday’s events," a dealer said. "We’re confident the rupee could stabilize around 174.50 levels over the coming weeks given that the debt repayment obligations are under control," he said.

"However, Sunday’s events could impact foreign direct investment flows," the dealer said.

The currency ended Thursday at 174.50/60 rupees. Markets were closed on Friday.

Yields in the secondary market were seen easing after increasing in early trading on some selling interest, but volumes were low, dealers said.

Yields had gained about 15-60 basis points in early trading.

A bond maturing in 2021 was trading at 10.30/35 percent, up from 10.15/20 percent on Thursday.

A bond maturing in 2024 was at 10.97/11.03 percent, up from the previous closing of 10.70/75 percent.

A bond maturing in 2027 had gone up to 11.50 percent but settled in at around 11.27/35 percent, up from Thursday’s closing of 11.10/15 percent.

The Colombo Stock Exchange was closed. (COLOMBO, 22 April 2019-SB)





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