Exchange Rates (week ended August 14, 2020) | Sunday Observer

Exchange Rates (week ended August 14, 2020)

In the Forex market, the USD/LKR rate on spot contracts appreciated considerably during the week to hit a high of Rs.182.40, a level last recorded in March 2020 on the back of continued selling interest on spot and forward contracts. However, it closed the week lower at Rs.183.50/70, but still considerably higher from its previous week’s close of Rs.185.22/27.

The daily USD/LKR average traded volume for the first four days of the week stood at US $ 89.58 million.

Government Securities Market

The secondary bond market ignited during the week ending August 14, 2020 with yields decreasing considerably, to reflect a downward shift of the overall yield curve on a week on basis. The downward momentum was fuelled by the outcome of the weekly Treasury Bill auction, where the total offered amount at a weekly auction was fully subscribed to, for the first-time in three weeks.

Yields of the liquid maturities of 2022’s (i.e. 15.11.22 and 15.12.22) and 2023’s (i.e. 15.01.23 & 01.09.23) as well as the 15.09.24, 01.05.25, 01.02.26, 15.08.27 and 15.05.30 hit lows of 5.58%, 5.60%, 5.63%, 5.90%, 6.13%, 6.37%, 6.47%, 6.96% and 7.28% against its previous weeks closing levels of 5.82/90, 5.88/95, 5.90/00, 6.05/15, 6.28/30, 6.55/60, 6.60/70, 7.08/15 and 7.30/40. However, selling interest at these levels curtailed any further downward movement with yields closing marginally higher once again than its weekly lows.

The daily secondary market Treasury bond/bill transacted volumes for the first four days of the week averaged Rs.14.10 billion.

In money markets, the high surplus liquidity saw weighted average rates on overnight call money and repos hold steady at 4.53% and 4.55% respectively for the week.

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

Courtesy: Wealth Trust Securities Ltd?