Re ends marginally higher at 40.35/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 40.32-38 to a dollar.

Sentiment: Bullish

Strong foreign exchange inflows spurred an appreciation in the market by opening a tad higher at 40.39/40 as against a close of 40.42/43 last week and shot up to an intraday high of 40.30.

However, buying by nationalised banks and demand from importers pulled it down to close at a low of 40.35 to a dollar.

The annualised premiums on the six-month and one-year forwards closed at 1.72 per cent and 1.83 per cent, respectively.

Money market

Sentiment: Bullish

The government securities market remained bullish on the back of excess liquidity in the market.

Prices of government papers went up by 18-20 paise in the medium term whereas the short-term papers witnessed prices moving up by 5-10 paise.

Yields on the government papers across maturities fell by 3 basis points.

Yield on the ten-year 7.49 per cent 2017 paper closed at 7.91 per cent compared with 7.94 per cent last weekend.

Call rates remained at 0.40-0.50 per cent with the RBI receiving bids worth Rs 98,000 crore from the market to absorb excess liquidity from the system.