Rupee depreciates to a seven week low

By Wealth Trust Securities

The depreciating trend in the USD/LKR rates continued yesterday as well with spot contracts dipping to hit a seven week low of Rs.133.90. The trend was driven in line with import demand, persistent foreign selling in both government rupee bonds and the Colombo stock market coupled with international currency developments, according to market sources.

The total USD/LKR traded volume for the previous day (12 August) was $ 38.40 million.

Meanwhile, the sentiment in secondary markets for government securities turned bearish once again yesterday as activity dried up drastically with the Parliamentary election around the corner. Minute amounts on the maturities of 1 June 2018, 1 May 2020 and 1 August 2025 were traded at levels of 7.80%, 8.40% and 9.60% respectively while the 364 day bill was offered at levels of 6.65%.

In money markets, the overnight call money and repo rates remained mostly unchanged to average 6.13% and 5.89% respectively as surplus liquidity stood at Rs. 65.53 billion yesterday.