Exchange Rates | Sunday Observer

Exchange Rates

?(Week ended July 17, 2020)

In the Forex market, selling interest on spot and forward contracts led to the USD/LKR rate appreciate marginally during the week to close the week at Rs.185.75/80 against its previous weeks closing level of Rs.185.80/90, subsequent to trading within the range of Rs.185.75 to Rs.185.95 during the week.

The daily USD/LKR average traded volume for the first four days of the week stood at US $ 79.68 million.?

Government Securities Market

The trading week ending 17th July 2020 saw the weighted averages on all three Treasury bill maturities dip below 5% for the first time in Sri Lanka’s history. A sixth consecutive week of declines saw the 91 day, 182 day and 364 day bills register weighted averages of 4.65%, 4.75% and 4.91% respectively, recording accumulated drops of 203 basis points, 205 basis points and 202 basis points.??

Furthermore, the robust outcome at the Treasury bond auctions and continued demand in the secondary market led to a parallel shift downwards of the overall yield curve for a sixth consecutive week as well.?

The liquid maturities of 15.12.22, 15.01.23, 15.09.24, 01.05.25 and 15.10.27 saw its yields decrease to weekly lows of? 5.32%, 5.35%, 6.00%, 6.24%, 6.40% and 6.60% respectively against its previous weeks closing levels of 5.45/50, 5.53/60, 6.25/29, 6.35/40, 6.50/60 and 6.65/75. In addition, maturities of 2023’s (i.e. 15.07.23 & 01.09.23) and 2024’s (i.e. 15.03.24 & 15.06.24) hit weekly lows of 5.65%, 5.60%, 5.96% and 6.00% respectively as well.

In money markets, the weighted average yields on overnight Call money and Repos averaged at 4.53% and 4.55% respectively for the week as the total outstanding market liquidity stood at a surplus of Rs.158.84 billion.

(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)

Courtesy: Wealth Trust Securities Ltd