Inflation ( CCPI)54.2% (Jan 2023)
GDP-11.8% (3Q 2022)
Unemployment5.0% (3Q 2022)
3M T-Bill Rate29.91%
12M T-Bill Rate27.72%
5Y T-Bond Rate29.00%
10Y T-Bond Rate30%
USD/LKR360/363
Click on the chart for more details
Reserves $1.89Bn (Dec 2022)
Cum. Trade Deficit $5.2Bn (Dec 2022)
Cum. Fiscal DeficitLKR 1,647Bn (Oct 2022)

Public expectation on USD/LKR is swing between stability at current level and further depreciation

Opinion pollsJan 3, 2023
Public expectation on USD/LKR is swing between stability at current level and further depreciation
This story is available exclusively to charts.lk subscribers. Become an member and start reading now.

The majority (40%) of the public expects USD/LKR to be settled around 350 to 375 by end of Jan. But 38% of the public expects it to depreciate beyond 375 by end of Jan. Despite the improvement of the FX flows compared with early 2022, the market does not expect LKR to strengthen substantially.

In the last year 2022, the dollar gained 7.9% (annually) against a basket of currencies. It’s the biggest annual jump in seven years. Fed has raised rates by a total of 425 basis points since March in an attempt to curb surging inflation.

As per Reuters, the Bank of Japan's ultra-dovish stance has the dollar set to gain 13.7% versus the yen this year, in the yen's worst performance since 2013. The euro loss by 5.9% annually versus the dollar, compared with last year's 7% drop. A combination of weak euro-zone growth, the war in Ukraine, and the Fed's hawkishness has put the euro under pressure in 2022.

Disclaimer

Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decisions.