Re ends marginally lower at 45.44/$

MARKETS REPORT

Outlook:
The spot rupee is expected to open in the range of 45.40-45 to a dollar.

Sentiment: Bullish

Even as the dollar gained overseas against all major currencies, rupee appreciated backed by greenback inflows.

The spot rupee opened at 45.45/48 but closed a tad higher at 45.4350/4450 to a dollar.

The annualised premium on six-month and one-year forward dollars closed at 1.67 per cent and 1.55 per cent.

Money market

Sentiment: Bearish

High inflation and higher cutoff yield in the auction last week led to a bearish sentiment.

Prices of government securities fell by 30-40 paise across maturities.

The yield on the 10-year paper closed at 7.67 per cent.

Interbank call rates ruled higher at 6.70-80 per cent since liquidity was in great demand.

Since liquidity was mopped up towards auction outflow and reserve requirement for the fortnight , the RBI could absorb only Rs 2800 crore from the market.