By Paneetha Ameresekere
Ceylon FT: The exchange rate (ER) further strengthened by three Sri Lanka cents (SLc) to Rs 130.20/25 to the US dollar, Friday over Thursday due to inflows, market sources told Ceylon FT. Talks that State- owned NSB is to float another US$ 500 million bond (following last year's US$ 750 million bond), the recent "SLDBs" and the SriLankan Airlines' bond, coupled with improved country ratings, have given a boost to the rupee, they said.
Exporters, and almost everybody else holding dollars, are converting the same. That has given a boost to the local currency, the sources said. There is sufficient liquidity, things are positive, despite the State and its agents borrowing commercially, they said. Rates of borrowing that Sri Lanka commands in international markets are now attractive due to the fact that economic indicators pertaining to the island are positive, they said.
The State on Friday was buying dollars at the Rs 130.20 level, if not for which the rupee would have strengthened further, they said.
Week on week (WoW) as at Friday, the ER has had strengthened by between five and 10 SLc, having had closed the previous week at the Rs 130.25/35 level in two way quotes to the dollar, they said. The sources further said that secondary market trading in government securities was dull, with the market looking for direction from Monday's monetary policy announcement. The benchmark one year maturity closed the week at 6.85% in secondary market trading, six basis points less than the weighted average yield it commanded at that week's primary auction, which was 6.91%.
At the time of going to press, Central Bank of Sri Lanka hadn't released details of its "open market operations" as at Friday. Therefore, it is not possible to give a synopsis of Friday's money market's excess liquidity position, and matters related to the same.
www.ceylontoday.lk
Ceylon FT: The exchange rate (ER) further strengthened by three Sri Lanka cents (SLc) to Rs 130.20/25 to the US dollar, Friday over Thursday due to inflows, market sources told Ceylon FT. Talks that State- owned NSB is to float another US$ 500 million bond (following last year's US$ 750 million bond), the recent "SLDBs" and the SriLankan Airlines' bond, coupled with improved country ratings, have given a boost to the rupee, they said.
Exporters, and almost everybody else holding dollars, are converting the same. That has given a boost to the local currency, the sources said. There is sufficient liquidity, things are positive, despite the State and its agents borrowing commercially, they said. Rates of borrowing that Sri Lanka commands in international markets are now attractive due to the fact that economic indicators pertaining to the island are positive, they said.
The State on Friday was buying dollars at the Rs 130.20 level, if not for which the rupee would have strengthened further, they said.
Week on week (WoW) as at Friday, the ER has had strengthened by between five and 10 SLc, having had closed the previous week at the Rs 130.25/35 level in two way quotes to the dollar, they said. The sources further said that secondary market trading in government securities was dull, with the market looking for direction from Monday's monetary policy announcement. The benchmark one year maturity closed the week at 6.85% in secondary market trading, six basis points less than the weighted average yield it commanded at that week's primary auction, which was 6.91%.
At the time of going to press, Central Bank of Sri Lanka hadn't released details of its "open market operations" as at Friday. Therefore, it is not possible to give a synopsis of Friday's money market's excess liquidity position, and matters related to the same.
www.ceylontoday.lk
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