364 day bill WAvg stagnant for sixth consecutive week

Thursday, 20 November 2014 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities The weighted average on the 364-day bill remained unchanged at 6.00% for a sixth consecutive week at its weekly auction conducted yesterday as an amount of Rs. 11.07 billion was accepted against its initial total offered amount of Rs. 10 billion. This intern saw activity in secondary bond markets remaining moderate as two-way quotes were mainly seen on the maturities of 15 August 2018, 1 July 2019, 1 July 2022 and 1 January 2024 at levels of 7.12/15, 7.15/20, 7.80/88 and 7.98/08 respectively. Meanwhile in money markets, no OMO (Open Market Operations) auctions were conducted yesterday as surplus liquidity stood at Rs. 9.17 b. Overnight call money and repo rates remained mostly unchanged to average 6.00% and 5.50% respectively.

Rupee dips marginally The dollar/rupee (USD/LKR) rate on spot next contracts (five-day forwards) as well as spot next-next contracts (six-day forwards) were seen depreciating marginally yesterday on the back of continued importer demand to close the day at levels of Rs. 131.15/25 and 131.25/40 respectively. The total USD/LKR traded volume for 18 November was at $ 58 million. Some of the forward dollar rates that prevailed in the market were: one month – 131.70; three months – 132.80; and six months – 134.08.

Rupee forwards fall slightly on importer dollar demand

Reuters: Rupee forwards ended slightly weaker on Wednesday due to importer dollar demand, though moral suasion from the Central Bank limited the fall, dealers said. The local currency was under pressure as imports continue to rise in a stable exchange rate regime and a low interest rate environment, they said. The rupee will likely remain weak due to rising seasonal imports, at least through November and then start to inch up in December on remittances, they added. The spot currency ended steady at 131.00/10 per dollar compared with Tuesday’s close. Dealers said the Central Bank defended the local currency at 131.00. Central Bank officials were not immediately available for comments. Three-day forwards, or spot-next, traded a tad weaker at 131.15/25 per dollar compared with Tuesday’s close of 131.12/15. Dealers said the Central Bank lowered the three-day forward moral suasion level by three cents to 131.15. Four-day forwards, which were actively traded, were capped at 131.25 after they traded weaker at 131.35, dealers said. They ended steady at 131.25/35 per dollar. “There was importer dollar demand and also people who had dollars were not selling,” said a currency dealer asking not to be named. Dealers said four-day forwards and premiums rose sharply earlier in the day due to the restriction in dealing with spot by the central bank through moral suasion. Overseas investors sold a net Rs. 39.54 billion ($ 302 million) worth of government securities in the eight weeks through 12 November, data from the Central Bank showed.