Sri Lanka rupee weaker

Mar 08, 2012 (LBO) – Sri Lanka’s rupee was quoted around 121.55/70 against the spot US dollar in mid-morning trade after opening around 121.30/70 rupees, dealers said. On Tuesday the rupee closed around 121.30/60 against the greenback. In money markets overnight gilt-backed repos were quoted at 8.80/90 percent levels and call money was at 9.75/85 percent.

In bond markets a March 2014 bond was quoted around 11.50/55 percent and 3-year bond maturing on 15 July 2012 was quoted at 11.70/12.00 percent, dealers said.

At this week Treasury bill auction, the 3-month yield rose 31 basis points to 10.11 percent, the six month rates rose 24 basis points to 10.18 percent and the 12-month yield rose 15 basis points to 10.45 percent.

Sri Lanka’s interest rates have to increase to slow credit and reduce pressure on a dollar peg.

Stocks were down 0.2 percent in the first hour of trading, with 58 million rupees of turnover. .