Re ends stronger at 43.07/$

MARKETS REPORT

Outlook:
The rupee is expected to open around 43.07 against the dollar today

Sentiment:Bullish

The spot rupee opened at 43.23-43.25 and appreciated sharply to close around 43.07 against the dollar

The annualised premiums on the six-month and one-year forward dollars closed at 5.86 per cent and 4.50 per cent, respectively

Money Market

Outlook

Money Market

Sentiment: Cautious

Liquidity was comfortable on the first trading day of the new financial year compared with tight conditions that prevailed on Friday

Banks picked up bonds to meet statutory liquidity requirements

Yield on 10-year government paper at the close was 8.17 per cent as against 8.03 per cent

Traders expect cut-off yield for tomorrow's auction of 7.55 per cent 2010 paper worth Rs 6,000 cr to set trend for yields

Call rates ruled in the 6.5-16 per cent range while the RBI infused Rs 19740 crore in the first leg of LAF

Foreign banks sold dollar with dollar:rupee swap one month annualised rate of 10.13 per cent