Exchange Rates Week ended October 16, 2020) | Sunday Observer

Exchange Rates Week ended October 16, 2020)

18 October, 2020

In the Forex market, USD/Rupee rate on spot contracts was seen trading within the range of Rs.184.15 to Rs.185.10 during the week before closing the week at Rs.184.20/30 against its previous week’s closing level of Rs.184.15/30.

The daily USD/Rupee average traded volume for the first four days of the week stood at US $ 129.90 million.

Government Securities Market

The sentiment in the secondary bond market remained bullish during the week ending 16th October as yields were seen decreasing, predominantly following the weekly Treasury Bill auction outcome, at where the total offered amount of Rs.40 billion was fully subscribed for the first time in five weeks. Continued buying interest on the liquid maturities of the 2021’s (i.e. 15.11.22 and 15.12.22), 2023’s (i.e. 15.01.23, 15.07.23 & 01.09.23), 15.09.24, 01.05.25, 01.02.26 and 2027’s (i.e. 15.08.27 & 15.10.27) saw its yields hit weekly lows of 5.50%, 5.52%, 5.58%, 5.65%, 5.75%, 6.03%, 6.30%, 6.50%, 6.85% and 6.87% respectively against its previous weeks closing level of 5.60/68 each, 5.65/72, 5.80/90 each, 6.15/20, 6.40/50, 6.65/70, 6.90/95 and 6.95/00 reflecting an downward shift of the overall yield curve for a second consecutive week.

Activity was seen on the two 2026’s (i.e. 01.06.26 & 01.08.26) and 15.05.30 maturities as well, at levels of 6.59% to 6.62%, 6.65% to 6.87% and 7.40% to 7.41%. In the money market, the average rates on overnight weighted call money and repo stood at 4.53% and 4.59% respectively for the week as the average net overnight surplus liquidity increased to Rs.179.99 billion for the week against its previous week of Rs.159.62 billion.

The DOD (Domestic operations Department) of the Central Bank injected liquidity during the week by way of 13 to 14 day reverse repo auctions at weighted average yields ranging from 4.53% to 4.54% while the CBSL’s holding of Govt.

Security decreased marginally to record a face value of Rs. 457.76 billion. (References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies) Courtesy: Wealth Trust Securities Ltd

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