Exchange Rates | Sunday Observer

Exchange Rates

29 November, 2020

Exchange Rates

Week ended November 27, 2020 

In Forex markets, in the absence of spot contracts been quoted, spot next contracts were seen dipping to a low of Rs.185.80/95 during the week in comparison to its previous weeks closing of Rs.185.50/80 before bouncing back to close the week at Rs.185.30/50. 

The daily USD/LKR average traded volume for the first four days of the week stood at US $ 69.74million.  

Government Securities Market 

The secondary bond market yield curve was seen steepening marginally during the week ending 27thNovember 2020 as yields on the very short end of the curve was seen closing the week broadly steady in comparison to its previous week while yields on the rest of the curve increased. 

Yields on the mostly sorted maturities of 15.12.22 and 15.01.23 increased to weekly highs of 5.90% and 6.00% respectively at the start of the week before bouncing back to weekly lows of 5.76% and 5.85% leading towards the monetary policy announcement and holding broadly steady subsequent to it, while yields on the maturities of 15.09.24 and 15.08.27 continued to increase to weekly highs of 6.55% and 7.23% from its lows of 6.45% and 7.15%. In addition, 15.12.23 was seen changing hands within the range of 6.05% to 6.07% while activity moderated considerably by the end of the week.

Meanwhile, the weekly Treasury Bill auction was all but fully subscribed as its total accepted amount was seen hitting a five week high of 95.26% of its total offered amount 

The daily secondary market Treasury bond/bill transacted volumes for the first four trading days of the week averaged Rs.15.50 billion.  

In money markets, the weighted average rates on overnight call money and repo remained mostly unchanged at 4.54% and 4.58% for the week as the total outstanding market liquidity in the system increased further to a surplus of Rs.186.92 billion against its previous weeks Rs.185.47 billion. The CBSL’s holding of Gov. Security’s too increased further to Rs.568.12 billion.

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

Courtesy: Wealth Trust Securities Ltd