The Sri Lankan rupee weakened further on Thursday, with the telegraphic transfer selling rate quoted at Rs. 352.50 against the US dollar, dealers told EconomyNext, while government bond yields rose across the curve.
The TT buying rate stood at Rs. 343.50, leaving a Rs. 9 spread on inter-bank transfers. A bond maturing on 15 December 2029 was quoted at 10.30/40 percent, against 10.30/45 percent at the previous close. The 1 August 2030 paper moved to 10.45/55 percent from 10.35/50 percent, the 15 June 2034 to 11.55/65 percent from 11.40/50 percent, and the 15 August 2036 to 11.55/75 percent.
Commercial-bank selling rates breached Rs. 350 in the same session, Newswire reported. NDB Bank’s selling rate climbed from Rs. 345 to Rs. 354, with buying up from Rs. 335 to Rs. 344. People’s Bank moved from Rs. 345.20 to Rs. 354.74 on the sell side and Rs. 335.64 to Rs. 344.44 on the buy side. Commercial Bank quoted Rs. 343.09 buying and Rs. 354.25 selling, against Rs. 335.39 and Rs. 346.50 a day earlier. Sampath Bank’s selling rose from Rs. 346.50 to Rs. 353.50. Seylan Bank’s rates were unchanged at Rs. 333.75 and Rs. 345.50.
The Rs. 352.50 TT print is a fresh cycle high, extending Wednesday’s record at Rs. 346.50 and reinforcing the international ranking of the rupee as Asia’s worst performer in May. The Central Bank Governor told the Committee on Public Finance on May 14 that the post-restructuring surplus run had ended, and Deputy Foreign Minister Vijitha Herath has linked the slide to the global Iran-conflict shock while pointing to expected IMF and ADB inflows.
Bond yields rising in tandem with the currency suggests the secondary market is repricing both rupee risk and the longer-dated maturity premium together.
