Re ends firm at 44.28/$

MARKETS REPORT

Forex Market

Outlook:
The spot rupee is expected to open in the range of Rs 44.30-32 to a dollar.

Sentiment:Volatile

Buoyed by a strong equity market and foreign inflows, the spot rupee opened at Rs 44.3637 to a dollar and closed lower at Rs 44.2728

The annualised premium for the six-month and one-year forward closed at 3.66 per cent and 2.95 per cent respectively

Money Market

Sentiment: Bullish

Bonds prices rose after falling initially as investors bet that the central bank won't lower SLR requirements

The yield on the benchmark 8.07 per cent, 10-year government bond fell by 2 basis points to 7.82 per cent

Liquidity was easy reflecting in the overnight call money rate closing flat at 8.10, after touching a high of 8.30 per cent in morning trade

The yield on the benchmark bond rose as much as 6 basis points earlier in the day as the daily average volume of debt traded last week dropped to almost a fifth to about Rs 4,000 crore

The RBI injected a total of Rs 16,525 crore into the system