Re ends higher at 44.11/$

MARKETS REPORT

Outlook:
The spot rupee is expected to open in the range of 44.07-12 to a dollar on Monday.

Sentiment: Bullish

Dollar selling by banks to raise rupee funds led to the rupee opening at 44.15 as against a closing of 44.20/21 on Thursday. It further rose to close at a high of 44.10/11 to a dollar.

The annualised premiums on the six-month and one-year forward dollars closed at 3.5 per cent and 3.10 per cent, respectively.

Money market

Sentiment: Bearish

Higher inflation and tightness in liquidity led to bearish sentiment in the market and cautious trading.

The prices of government securities fell by 10-20 paise across maturities.

The yield on the ten-year paper closed at 8.01 per cent.

Call rates zoomed up to 11 per cent with the RBI infusing around Rs 19,500 crore into the banking system.

Inflation figured higher at 6.46 per cent as against the market expectation of 6.25 per cent.