Exchange Rates | Sunday Observer

Exchange Rates

15 November, 2020

Exchange Rates

 (Week ended November 13, 2020) 


In the Forex market, The USD/Re rate on spot contracts was seen depreciating further during the week to close the week at a level of Rs.184.70/80 against its previous week’s closing level of Rs.184.45/50 on the back of continued buying interest by banks. 

The daily USD/LKR average traded volume for the first four days of the week stood at US $ 47.40million.  


Government Securities Market 

The secondary market bond yield curve recorded an upward shift during the week ending 13thNovember due to selling interest, which was driven by the primary auction outcomes, where both the weekly Treasury bill auction and the Treasury Bond auctions were undersubscribed. 

Activity remained moderate throughout the week and centered on the liquid maturities of 2022’s (15.11.22 and 15.12.22), 2023’s (i.e. (01.09.23 and 15.12.23), 15.09.24, 01.05.25, 01.02.26, 15.10.27 and 15.05.30 with its yields increasing to intra week highs of 5.60%, 5.75%, 6.02%, 6.05%, 6.30%, 6.50%, 6.65%, 7.04% and 7.66% against its previous week’s closing levels of 5.55/65, 5.62/68, 5.90/00, 5.95/05, 6.20/25, 6.40/50, 6.60/65, 6.95/02 and 7.35/65. In addition, short dated bond maturities of 2021’s (i.e. 01.03.21, 01.05.21, 01.08.21 & 15.12.21) and additional 2022’s (i.e. 15.03.22, 01.07.22 & 01.10.22) traded at levels of 4.58% to 5.10% and 5.45% to 5.65% as well. Activity in the secondary bill market remained high during the week as January, February, March, June and September 2021 bills changed hands at levels of 4.60% to 4.64%, 4.64%, 4.63%, 4.78% to 4.80% and 4.82%. 

The foreign holding in Sri Lankan Rupee bonds recorded an outflow for a second consecutive week to the tune of Rs.1.43 billion for the week ending November 11, 2020. 

In money markets, the total outstanding market liquidity in the system was seen increasing for the first time in three weeks to record a surplus of Rs.140.06 billion against its previous week of Rs.123.80 billion. The weighted average rates on overnight call money and repo remained mostly unchanged at 4.54% and 4.59% respectively for the week while the CBSL’s holding of Govt. Securities increased further to 515.97 billion. 


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

Courtesy: Wealth Trust Securities Ltd