Exchange Rates | Sunday Observer

Exchange Rates

22 November, 2020

Exchange Rates

(Week ended November 20, 2020) 

In Forex markets, the USD/LKR rate on spot contacts dipped to an intraweek low of Rs.185.40 during the week against its previous weeks closing of Rs.184.70/80 before activity shifted to spot next contracts to close the week at Rs.185.50/80.

The daily USD/LKR average traded volume for the first four days of the week stood at US $ 67.13million.  


Government Securities Market


The secondary bond market yields increased further during the week ending 20thNovember 2020, continuing the upward momentum witnessed over the previous week. The persistent reduction in demand at the weekly Treasury bill auction which went undersubscribed for a fourth consecutive week coupled with the prevailing dull sentiment in the market were seen as the reasons that led to the upward momentum. 

Yields of the liquid maturities of 15.12.22, 15.12.23, 15.09.24, 15.08.27 and 01.07.28 increased to weekly highs of 5.87%, 6.10%, 6.43%, 7.12% and 7.22% respectively against its previous weeks closing level of 5.70/75, 6.05/10, 6.27/33, 7.02/04 and 7.15/30, admit moderate trades while two-way quotes on the rest of the curve were seen increasing as well to reflect an upward shift of the yield curve. 

The short dated maturities of January and February 2021 bills and August and December 2021 bonds traded at levels of 4.62%, 4.72% to 4.75%, 4.84% to 4.85% and 5.04% to 5.05% respectively. 

Meanwhile, foreign holding in Rupee bonds remained mostly unchanged recording a meager inflow of Rs.0.03 million for the week ending 18thNovember 2020 following two consecutive weeks of outflows.

In money markets, the total outstanding market liquidity in the system increased further for a second consecutive week to record a eight week high surplus of Rs.185.47 billion against its previous week's Rs.140.06 billion. The weighted average rates on overnight call money and repo remained mostly unchanged at 4.54% and 4.61% respectively for the week as the overnight surplus liquidity was seen increasing to Rs.195.47 billion by Friday. The CBSL’s holding of Govt. Security’s increased to Rs. 566.32 billion.


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

Courtesy: Wealth Trust Securities Ltd