The Sri Lankan rupee closed weaker at 299.75/300.25 against the US dollar on Tuesday, marking a drop from Monday’s close of 297.70/298.20. This depreciation comes ahead of the upcoming Treasury bond and bill auctions, as well as amid ongoing fiscal pressures. Despite the rupee’s decline, Bond Yields remained stable, suggesting market resilience.
Sri Lanka Rupee Depreciates to 299.75/300.25 Against the US Dollar
The Sri Lankan rupee continued its downward trend, closing at 299.75/300.25 to the US dollar on Tuesday. This represents a shift from the previous day’s rate of 297.70/298.20. Analysts have pointed to fluctuating market conditions and fiscal challenges as key factors contributing to the currency’s volatility. The announcement of Treasury bond and bill auctions scheduled for this week has added an element of uncertainty to the exchange rate, with market participants closely monitoring these developments.
Bond Yields Remain Steady Despite Currency Decline
Despite the weakening of the Sri Lankan rupee, Bond Yields have remained broadly steady in the local market. A bond maturing on 15.12.2026 closed flat at 9.40/55 percent, while the bond maturing on 15.09.2027 saw no change, holding steady at 9.95/10.05 percent. Meanwhile, bonds maturing on 15.10.2028 experienced a slight increase in yield, rising to 10.50/60 percent, compared to the previous close of 10.45/50 percent. Similarly, the yield on the 15.12.2029 bond saw a slight increase to 10.80/90 percent from 10.75/95 percent. However, the 15.10.2030 bond yielded slightly lower, closing at 10.85/11.05 percent, down from 10.85/11.10 percent the previous day.
Central Bank to Hold Key Auctions This Week
Looking ahead, the Central Bank of Sri Lanka has announced two crucial auctions this week. On Wednesday, April 9, an auction of Rs. 80,000 million Treasury bills will take place, followed by a Treasury bond auction of Rs. 100,000 million on Thursday, April 10. These auctions are expected to provide valuable insight into the market’s response to the current fiscal conditions and may influence the movement of Bond Yields and the rupee in the days ahead.