Rupee appreciates to a three month high

By Wealth Trust Securities

The rupee on its one week forward contract appreciated yesterday to a high of Rs.145.35/45, a level last seen on the 15th of June 2016, on the back of export conversions and inward remittances outweighing importer demand.

In the secondary bond market yesterday, yields were seen increasing subsequent to six sessions of dips, on the back of profit taking. Selling interest in morning hours of trading saw yields increase on the 01.03.21, 01.09.23, 01.08.24 and the two 2026 maturities (i.e. 01.06.26 and 01.08.26) to intraday highs of 11.10%, 11.38%, 11.60%, 11.75% and 11.70% respectively against its previous day’s closing levels of 10.92/97, 11.32/37, 11.45/50 and 11.53/60 each. However, buying interest at these levels saw yields dip once again to lows of 11.00%, 11.35%, 11.47%, 11.60% and 11.57%. In addition, the 01.10.22, the two 2025’s (i.e. 15.03.25 and 01.08.25) and the 15.05.30 maturities changed hands at levels of 11.25%, 11.50% to 11.60%, 11.55% and 11.89% to 11.92% respectively.  

Meanwhile money markets, overnight call money and Repo rates remained steady to average at 8.40% and 8.58% respectively as liquidity reversed to a surplus of Rs.9.06 billion after a lapse of two days. 

The total USD/LKR traded volume for the 07th of September 2016 was $ 57.00 million.

 Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 146.00/10; 3 Months - 147.60/70 and 6 Months - 149.90/00