Rupee Continues to Strengthen

The benchmark ‘spot’ gained for the third consecutive market day, year on year (YoY) to today, this time by between 031 per cent-2.42 per cent ( one- eight rupees)) to Rs 319/320 to the US dollar in two way quotes market sources who didn’t want to be named told ‘BMD.’

This was due to continuous ‘soft’ dollar buying by the Central Bank of Sri Lanka (CBSL) from the market to shore up the country’s parlous foreign reserves, coupled with ‘sustained’ and ‘heavier ‘avurudu’ inflows which also saw the ‘spot’ gain for the third consecutive market day to today, market day over market day, too, this time also sharply, ie by 0.62 per cent (two rupees) to 319/320 to the dollar in two way quotes, after previously falling for three consecutive market day to last Thursday (30 March), they
added.

Meanwhile, CBSL sharply strengthened the official ‘spot’ for the second consecutive market day to today, this time by 0.81 per cent (Rs 2.61) to Rs 321.17 to the dollar. In related developments, a year ago CBSL kept the official ‘spot’ unchanged at Rs 307.79 to the dollar, thereby resulting in a YoY weakening of the official ‘spot’ by 4.35 per cent (Rs 13.38) to the dollar, to today.

In like developments, a year ago the market ‘spot’ too remained unchanged at Rs 325/335 to the dollar in two way quotes. ‘Spot’ trades are settled after two market days from the date of trading. CBSL the steward of GoSL debt and of its foreign reserves deals in the official ‘spot.’

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