Re ends low at 44.72/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 44.69/73 to a dollar.

Sentiment: Dull

The spot rupee opened at 44.71 to a dollar but closed at a low of 44.71/72 following heavy demand dollar buying by the Reserve Bank of India.

With easy rupee liquidity, six-month and one-year forward dollars closed at 1.20 per cent and 1.32 per cent respectively.

Money market

Sentiment: Bullish

The bond market rallied with liquidity driven buying demand from banks.

The demand was mainly seen in 5-year paper with prices of 9.39 per cent 2011 gilt going up by almost 40 paise.

The yield on 8.07 per cent 2017 gilt closed at 7.52 per cent.

Call rates closed at 5.60 per cent against highs of 6.10/11 per cent on Tuesday.

There was a net absorption of around Rs 29,000 crore from the system.