Re ends stronger at 41.11/$

MARKETS REPORT

Forex Market

Sentiment:Bullish

The spot rupee opened at 41.27 but closed at a high of 41.11 to a dollar on the back of dollar inflows from foreign institutional investors after a gap.

The annualised premium for six-month and one-year forward dollars closed lower at 6.45 per cent and 5.94 per cent.

Money Market

Sentiment: Bearish

The scheduled auction of Rs 10,000 crore kept the market on tenterhooks.

Prices of government securities moved in band of 3-5 paise during the day.

The yield on 10-year paper closed at 8.16 per cent against a close of 8.17 per cent on Monday.

Call rates closed around 8.5-9 per cent even as the RBI infused liquidity of Rs 7,500 crore into the market.

The RBI is expected to announce the auction of 10-14 year paper for Rs 6,000 crore and long-term paper above 20-year maturity for Rs 4,000 crore.