Re ends weaker at 44.29/$

MARKETS REPORT

Forex Market

Outlook:
The spot rupee is expected to open in the range of 44.24-29 to a dollar on Monday.

Sentiment:Dull

The spot rupee opened at 44.25/26 and closed at a low of 44.28/29 before reaching an intraday high of 44.2150 to a dollar.

The annualised premium for six-month forward dollars closed at 3.92 per cent.

Money Market

Sentiment: Bearish

Apprehending the outcome of the auction results and cut off yields at the t-bill auction on Wednesday, the market remained cautious in trading.

There was a net fall of 10-15 paise in the prices of government papers, mostly in the benchmark securities.

The yield on the 10-year benchmark paper closed at 7.89 per cent .

Call rates ruled around 7.90/7.95 per cent with the RBI infusing around Rs 11,500 crore into the system.

The RBI absorbed Rs 5,000 crore through 114 competitive and 11 non competitive bids through the auction of 7.94 per cent 2021 government stock at a cut-off yield of 8.20 per cent, as against market expectation of 8.15 per cent.