Re ends higher at 44.88/$

MARKETS REPORT

Outlook: The spot rupee is expected to open in the range of 44.82-89 to a dollar.

Sentiment: Bullish

The spot rupee opened at 44.92v but closed higher at 44.88 to a dollar.

Six-month and one-year annualised premiums closed at 2.10 per cent and 1.85 per cent against a close of 2.18 per cent and 1.89 per cent respectively on Tuesday.

Liquidity constraint got reflected in one-month premium that shot up 3.25 per cent against 3 per cent on Tuesday .

Money market

Sentiment: Bullish

The market opened weak but closed with a rally in government papers following a drop in US yields and buying demand by insurance companies.

Prices of government securities moved up sharply by 50-60 paise in the long end of the maturity, while short-term papers went up by 15-20 paise.

The yield on 10-year paper moved down to 7.61 per cent against 7.64 per cent.

Call rates ruled around 7 per cent with the RBI absorbing around Rs 4500 crore from the market.

The RBI could mop up only Rs 1,200 crore from the market through treasury bill auctions against the notified amount of around Rs 3500 crore.