Re ends higher at 40.43/$

MARKETS REPORT

Outlook:
The spot rupee is likely to open at 40.4142 level in next week.

Sentiment: Bullish
The rupee opened at 40.5051 against the dollar. It closed at Rs 40.4243.

RBI intervention (buying dollar) through banks kept the rupee weak.

The annualised premium for six-month and one-year forward dollars closed at 1.86 % and 1.90 %.

Money market

Sentiment: Bullish

The call rates ruled easy on ample liquidity in the money market. They ruled between 0.14 and 0.40 per cent.

RBI intervention to stem rupee appreciation released more resources in the system, adding liquidity into the system.

Flush with rupee resources, banks put bids to place funds with the RBI under the liquidity adjustment facility (LAF).

Banks placed bids of Rs 63,750 crore under LAF I and Rs 41,950 crore under LAF II.

The total turnover in the government securities today moved up to Rs 4,915 crore from yesterday's Rs 4,855 crore, according to data available with negotiated trade system.

The 10-year government paper (7.49% 2017) closed at Rs 96.99.

The yield on 10-year paper stood at 7.93 per cent.