Re ends higher at 40.52/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 40.48-55 to a dollar

Sentiment: Bullish

The spot rupee opened at 40.55/56 but shot up to a high of 40.2850 before closing at 40.51/52 to a dollar.

The annualised premium for six-month and one-year forward dollars closed at 3.13 per cent and 3.07 per cent against its previous close of 4.23 per cent and 3.70 per cent last week.

Money markets

Sentiment: Bullish

Since there was no announcement on CRR hike or MSS bonds on Monday, prices remained volatile amid brisk trading.

While prices of government securities rose and fell by 20-25 paise during the day, towards the close it was down by 10-20 paise across maturities.

The yield on 10-year benchmark security closed at 8.07 per cent against a closing of 8.1350 per cent last week.

Liquidity was comfortable and call rates closed at 6 per cent .

The RBI received bids worth Rs 17,500 crore from the system, while it accepted only Rs 3000 crore under reverse repo to absorb excess liquidity.