Re weaker at 44.13/$

MARKETS REPORT

Forex Market

Outlook:
The spot rupee is expected to open in the range of 44.07-14 to a dollar.

Sentiment:Bullish

The spot rupee opened at 44.02/03 to a dollar, but closed at a low of 44.12/13 following intervention by the RBI to stem rupee appreciation.

The annualised premiums for six-month and one-year forward dollars closed at 3.2 per cent and 2.9 per cent, respectively.

Money Market

Sentiment: Bearish

The government securities market continued to remain lacklustre on apprehensions of the auction outcome.

The prices of government securities fell by 5-30 paise across maturities.

The yield on the ten-year bond closed at 7.80 per cent.

Call rates eased to 6.75-7 per cent following improved liquidity, while the RBI absorbed around Rs 1,740 crore from the market.

The government got full subscription to the securities auctioned to mop up around Rs 9,000 crore from the market.

While the cut-off yield on the long term 8.33 per cent 2036 was according to market expectation of 8.19 per cent, the 7.37 per cent 2014 paper fetched a little higher yield at 7.87 per cent.