Sri Lankan Rupee strengthened against the US Dollar ($) on early Monday during intraday trading but closed weaker in dull trade amidst foreign exchange flows to the tune of US $ 1.2 billion that came via Hambanthota port deal and Sri Lanka Development Bond Sales . Analysts said that further strengthening of Rupee is expected on coming days due to over US $ 1.2 billion worth of foreign exchange flows, however dealers anticipate US Dollar ($) to hit Rs. 163 to 165 per Dollar by the end of the year, reports highlight.
Central Bank announced average telegraphic transfer rates quoted by Colombo based Commercial banks as at 9:30 a.m today (25) reported as selling rate of a US Dollar at Rs. 160.3972 per US Dollar ($) compared to a high of Rs. 161.0082 per US Dollar (US $) on June 18th and Rs. 160.9279 per US Dollar ($) on June 22nd.
Dealers said that they witnessed a state bank selling at Rs. 158.90 per US Dollar on Monday, whilst the Sri Lankan Rupee, which went as far as 158.90 per dollar intraday, ended at 158.70-150.90 per dollar, compared with Friday’s close of 158.60-159.00 range. The spot rupee hit an all-time low of 160.17 per dollar on Wednesday, and has declined 3.5 percent so far this year.
Government issued Sri Lanka development bonds amounting to US $ 700 million on Monday (June 25th) which was oversubscribed with US $ 937 million of bids received from investors. The Central Bank of Sri Lanka (CBSL) received US $ 829.60 million bids for the 2 years 10 months bond and accepted US $ 693.89 million worth bids at a weighted average fixed rate of 5.25%. CBSL accepted only US $ 6.11 million from the US $ 44.11 million worth bids received for the 3 years 10 months bond at a weighted average fixed rate of 5.52%. CBSL rejected US $ 63.21 million of bids received for the 4 years 10 months bond offered.
Last Wednesday (June 20), the state-owned Sri Lanka Ports Authority (SLPA) said China Merchants Port Holdings had made a US $ 584 million payment as part of a US $1.12 billion deal to operate the deep sea Hambanthota port. Amidst these flows the western economies dominated global lender - International Monetary Fund (IMF) said on Wednesday Sri Lanka’s economy remains vulnerable to adverse shocks because of sizable public debt and large refinancing needs. Head of the IMF mission to Sri Lanka, Manuela Goretti, asserted aftermarket hours on Wednesday that she expected the currency to remain under pressure, and Exchange rate flexibility is the first line of Defence.
(under the courtesy of adaderana news web)