Exchange Rates (Week ended October 9, 2020) | Sunday Observer

Exchange Rates (Week ended October 9, 2020)

11 October, 2020

In the forex market, the appreciating trend on the Rupee continued as the USD/Re on spot contacts was seen closing the week at Rs.184.15/30 against its previous week’s closing level of Rs. 184.50/60, subsequent to trading within the range of Rs. 184.15 to Rs. 184.95.

The daily USD/Re average traded volume for the first four days of the week stood at US $ 117.71 million.

Government Securities Market

The secondary bond market witnessed renewed buying interest during the week ending October 9 as yields decreased throughout the week to reflect a downward shift of the overall yield curve.

The mostly demanded maturities were the 15.09.24, 01.05.25, 01.02.26, two 2027s (i.e. 15.08.27 and 15.10.27) and 01.07.28 as its yields dipped to weekly lows 6.20%, 6.45%, 6.67%, 6.95%, 7.00% and 7.15% against its previous weeks closing level of 6.25/35, 6.50/60, 6.85/90, 7.07/14, 7.10/20 and 7.15/35. Maturities of 2022s (i.e. 15.11.22 and 15.12.22), 2023s (i.e. 15.01.23 and 15.10.23) and 15.05.30 were seen hitting lows of 5.70%, 5.72% each, 5.85% and 7.39%. The total subscription volume at the weekly Treasury Bill auction increased but still fell short of its total offered amount for a fourth consecutive week.

The daily secondary market Treasury Bond/Bill transacted volumes for the first four trading days of the week averaged Rs. 8.09 billion.

In the money market, the average net overnight surplus liquidity was recorded at Rs. 159.62 billion for the week against its previous week of Rs. 171.58 billion as the DOD (Domestic operations Department) of Central Bank injected liquidity during the week by way of seven days and 14 days reverse repo auctions at weighted average yields ranging from of 4.53% to 4.54% and 4.55%. It further injected an amount of Rs. 5.00 billion for Standalone Primary Dealers by way of a 14-day reverse repo auction at a weighted average rate of 4.88%.

The weighted average rates on overnight call money and repo stood at 4.53% and 4.61% for the week while CBSL’s holdings of Govt. Security’s increased to a face value Rs. 464.13 billion.

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

Courtesy: Wealth Trust Securities Ltd