Exchange Rates (Week ended September 18,2020) | Sunday Observer

Exchange Rates (Week ended September 18,2020)

20 September, 2020

In the Forex market, the Rupee on its spot contacts was seen depreciating during the week to close the week at Rs.185.45/55 against its previous weeks closing level of Rs.184.45/55, subsequent to trading within the range of Rs.184.10 to Rs.185.50.

The daily USD/LKR average traded volume for the first four days of the week stood at US $ 84.74 million.

Government Securities Market

The sentiment in the secondary bond market turned sluggish to bearish during the week ending 18th September 2020 as activity dried up considerably, bearing a few sporadic trades. The sentiment was further supported by the outcome of the weekly Treasury bill auction, where the total accepted amount was seen falling short of the total offered amount.

The limited trades seen during the week saw yields fluctuate within a narrow range mainly on the maturities of 2022’s (i.e. 15.11.22 & 15.12.22), 2023’s (i.e. 15.05.23, 01.09.23 & 01.10.23), 2024’s (i.e. 15.06.24 & 15.09.24), 01.05.25, 01.02.26, 15.08.27 and 01.07.28 at levels of 5.53% to 5.57%, 5.70% to 5.75%, 6.08% to 6.10%, 6.37%, 6.56% to 6.59%, 6.88% to 6.95% and 7.05% respectively. This intern reflected a marginal shift upwards of the overall yield curve. In secondary bills, October to December 2020, March 2021 and August 2021 maturities traded at level of 4.52% to 4.57%, 4.65% and 4.80% respectively. The primary Treasury bond auctions conducted on Friday recorded steady outcomes as the 01.10.2023, 01.02.2026 and 01.07.2028 maturities recorded weighted average rates of 5.72%, 6.57% and 7.07% respectively, marginally below its stipulated cut off rates of 5.75%, 6.60% and 7.08%.

In the money market, the standing Lending Facility Rate (SLFR) of Central Bank or discount window at 5.50% was accessed during the week for the first time since 18th August 2020. This was despite the average net overnight surplus liquidity in the system registering at Rs.172.24 billion for the week, below its previous week’s average of Rs. 194.12 billion. However, the weighted average rates on overnight call money and repos remained broadly steady at 4.52% and 4.59% respectively for the week.

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

Courtesy: Wealth Trust Securities Ltd