Exchange Rates (Week ended October 29, 2020) | Sunday Observer

Exchange Rates (Week ended October 29, 2020)

1 November, 2020

In the Forex market, USD/Rupee rate on spot contracts were seen trading within a steady range of 184.20 to Rs.184.40 during the week before closing the week at levels of Rs.184.20/30 against its previous weeks of Rs.184.20/35. 

The daily USD/Rupee average traded volume for the first three days of the week stood at US $ 70.20 million.  

Government Securities Market

The secondary bond market went through a week of sporadic activity due to most market participants seen on the sidelines with limited trades taking place within a steady range across the yield curve.

The limited activity during the shortened trading week ending October 29, centered on the liquid maturities of 2022’s (i.e. 15.11.22 and 15.12.22), 2023’s (i.e. 15.07.23, 01.09.23 and 01.10.23), 15.09.24, 01.02.26 and 2027’s (i.e. 15.08.27 and 15.10.27) at levels of 5.58% to 5.61%, 5.82% to 5.95%, 6.10% to 6.18%, 6.55% to 6.64% and 6.89% to 6.99%.

The demand for secondary market bills saw September and October 2021 maturities change hands from weekly highs of 4.85% and 4.93% to lows of 4.79% and 4.92%.    

The total subscription for the weekly Treasury bill auction was seen falling short of its total offered amount for the first time in two weeks once again while the foreign holding in Rupee bonds recorded a minute increase of Rs.0.26 million for the week ending October 28, 2020. 

Inflation (CCPI) for October remained steady at 4.00% on the basis of its point to point. Its annual average decreased for a second consecutive month to 4.6% against its previous month of 4.7%. 

The daily secondary market Treasury Bond/Bill transacted volumes for the first three trading days of the week averaged Rs. 9.51 billion.  

In money markets, the weighted average rates on overnight call money and repo remained mostly unchanged at 4.53% and 4.59% for the week as the total outstanding market liquidity remained high at Rs.140.11 billion against Rs.150.61 recorded the previous week. The CBSL’s

holding of Govt.

Security’s decreased marginally to 488.17 billion. 

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

Courtesy: Wealth Trust Securities Ltd