Re ends tad higher at 40.35/$

MARKETS REPORT

Outlook:
The spot rupee is expected to open in the range of 40.32-37 to a dollar.

Sentiment: Bullish

The spot rupee opened and closed around 40.34-35 even as it reached an intraday high of 40.27 to a dollar.

The annualised premia for six-month and one-year forward dollars closed at 0.88 per cent and 1.28 per cent respectively.

Money market

Sentiment: Bullish

Apprehensions on monetary policy announcement led to fall in gilt prices following profit-taking by banks.

The prices of government securities fell by 10-15 paise across maturities.

The yield on the ten-year benchmark paper closed at 7.80 per cent.

Call rates closed at 0.25 per cent on the back of surplus liquidity.

Five states raised a total of Rs 1,300 crore at interest rates ranging from 8 per cent to 8.05 per cent.