Re ends marginally higher at 40.50/$

MARKETS REPORT

Outlook
The spot rupee is expected to open in the range of 40.43-40.50 to a dollar owing to demand from oil companies.

Sentiment: Bullish

The spot rupee opened at 40.46/47 but fell to close at 40.49/50 after reaching an intraday high of 40.41/42 to a dollar following RBI intervention to buy dollars.

The annualised premiums for the six-month and one-year forward dollars closed at 3.03 per cent and 2.99 per cent, respectively.

Money market

Sentiment: Bearish

Statements by the finance minister and the RBI governor to curb inflation through monetary measures hit the market sentiment.

The prices of government securities fell by 20-30 paise across maturities.

The yield on the ten-year benchmark security rose to 8.0950 per cent compared with 8.07 per cent on Monday.

Liquidity was comfortable with call rates closing around 4 per cent.

The RBI received bids around Rs 33,270 crore under its reverse repo from the market while it could accept only Rs 3,000 crore.