Re ends at 44.40/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 44.39/43 to a dollar.

Sentiment: Dull

The spot rupee opened at 44.42/43 but gained towards the end of the day to close at 44.40/4050 to a dollar.

Owing to strain on liquidity, the premium to book dollars for forward rate shot up with six-month and one-year dollars at 2.54 per cent and 2.04 per cent respectively.

Money market

Sentiment: Bearish

The government securities market remained bearish under tight liquidity situations.

While the market remained dull throughout the day, the activity picked up towards the end which is perceived to be trading by the RBI.

The 8.07 per cent 2017 gilt closed at 7.38 per cent.

Call rates ruled at a high of 6.95-7 per cent.

Corporate bond market remained lacklustre.