The Sri Lankan rupee weakened for a second consecutive session on Wednesday, with the interbank spot quoted at 333.00/335.50 to the US dollar from 332.00/333.50 the previous day, dealers told EconomyNext.
The Central Bank’s published telegraphic transfer rate, used by commercial banks for retail-customer transactions, climbed to Rs.328.00 buying and Rs.337.97 selling — up from Rs.326.75 buying and Rs.336.60 selling on Tuesday, Newswire reported. EconomyNext’s dealer canvas put the TT band at Rs.328.50 buying and Rs.337.50 selling.
The currency also depreciated against the Bahraini and Kuwaiti dinars, but largely appreciated against the Australian dollar, the euro and sterling pound on the cross-rate sheet.
In the secondary bond market, yields were broadly steady. A bond maturing on 15.12.2029 was quoted at 11.90/12.05 percent, down from 11.90/12.10 percent; the 1 August 2030 maturity was flat at 12.05/15 percent; and the 15 March 2035 maturity was flat at 13.05/15 percent. A 140-billion-rupee Treasury bill auction was ongoing at the time of EconomyNext’s note.
Wednesday’s slide extends a depreciation run that has steepened since mid-May. The Central Bank’s Weekly Economic Indicators last week put the rupee 5.4% weaker year-to-date with usable reserves at US$6.77 billion, and Monday saw the interbank quote at 330.00/332.00 with the ASPI gaining 0.30% to 22,377. The widening between the CBSL TT rate and the interbank spot — about Rs.5 in the buying leg — continues a pattern that Deputy Finance Minister Anil Jayantha framed in mid-May as transient rather than structural.
Sources: CBSL Rates : Rupee continues to depreciate against the USD — Newswire and Sri Lanka rupee 333.00/335.50 to US dollar spot, bond yields flat — EconomyNext.
