Business Standard

Re ends firm at 42.92/$

MARKETS REPORT

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Our Research Bureau Mumbai
Forex Market
 
Outlook:
The dollar is likely to show tendency towards appreciation.
 
Sentiment:Cautious
 
  • The spot rupee traded at Rs 42.90/91 in early hours, but later appreciated to the 42.74 level. It closed at Rs 42.90/92.
  • The annualised premium for the six-month and one-year forwards closed at 5.27 per cent and 4.11 per cent, respectively.
  •  
    Money Market
     
    Sentiment: Cautious
  • Liquidity remained comfortable on Monday.
  • Some banks bought bonds to use them as collateral to borrow funds from the Reserve Bank of India.
  • The yield for the 10-year government paper (8.07 per cent 2017 bond) at the close was 8.12 per cent.
  • Call rates eased and remained in the 5.5-7 per cent range. The Reserve Bank of India absorbed over Rs 2,200 crore on net basis through liquidity adjustment facility.
  • The present liquidity is seen enough to match the demand from banks and yields on bonds are looking attractive to build positions before money gets tight again
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    First Published: Apr 10 2007 | 12:00 AM IST

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