Re ends stronger at 43.48/$

MARKETS REPORT

Sentiment:Bullish

The spot rupee opened at 43.67/68 but closed at a high of 43.47/48 to a dollar following dollar selling by banks as part of sell-buy swaps to create trading positions.

The annualised premiums for the six-month and one-year forward dollars closed at 4.02 per cent and 3.47 per cent, respectively.

Money Market

Sentiment: Bearish

The prices of government securities fell by 15-20 paise across maturities.

The yield on the ten-year benchmark paper closed at 8 per cent on the closing day of the financial year as against 7.54 per cent seen last year in the same period.

Liquidity remained tight during the beginning of the trading session since the market was not sure of the repo facility with the RBI to avail of rupee funding.

While it closed around 30 per cent , call rates reached an intraday high of 70 per cent.

The RBI raised CRR by 50 basis points, reverse repo rate by 25 basis points and announced auction of 7.75 per cent 2010 paper under MSS as anti- inflationary measures on Friday.