Re ends at 44.45/$

MARKETS REPORT

Outlook:
The spot rupee is expected to open in the range of 44. 42/45 to a dollar.

Sentiment: Bearish

Expectation of interest rate hike by the Bank of Japan triggered a slide in the dollar globally and against the rupee as well.

The spot rupee opened at a low of 44.63/64 but the trend reversed during the day with the currency closing at 44.44/45 to a dollar.

Six-month and one-year forward dollars fetched a premium of 2.27 per cent and 1.80 per cent respectively.

Money market

Sentiment: Bearish

The government securities market was bearish with few insurance and provident fund players in the market.

Liquidity was moderate with call rates closing at 6.70 per cent.

The top traded 8.07 per cent 2017 gilt closed at 7.37 per cent whereas 10-year yield hovered around 7.35 per cent.

The Reserve Bank of India (RBI) injected liquidity of Rs 15,240 crore through repo against Rs 17,000 crore on Wednesday.

Banks stayed away from the market.