Re ends higher at 44.93/$

MARKETS REPORT

Outlook:
The spot rupee is expected to open in the range of 44.89-96 to a dollar.

Sentiment: Bullish

Heavy inflows and dollar bearishness led to the spot rupee closing at a high of 44.92/93 after opening at 45. 30/31 to a dollar.

The annualised premium for six-month and one-year forward dollars closed at 1.96 per cent and 1.78 per cent, respectively.

Money market

Sentiment: Bullish

Government securities fell on profit taking triggered by bearish US data released in the minutes of FOMC meeting.

Prices of short- and medium-term papers fell by 10-20 paise, whereas long tenor papers came off by almost 50-60 paise.

The yield on 10-year benchmark closed at 7.54 per cent.

Call rates hovered around 7.50-7.70 pr cent with the RBI absorbing around Rs 4565 crore only in the second tranche of LAF.

State government papers were auctioned for yields in the range of 7.74-7.82 per cent.