Re ends firmer at 40.72/$

MARKETS REPORT

Outlook:
The spot rupee is expected to open in the range of 40.68-73 to a dollar .

Sentiment:Bullish

The spot rupee opened at 40.80/81 but gained to close around 40.71/72 following heavy dollar inflows

The annualised premium for six-month and one-year forward dollars closed at 2.89 per cent and 2.81 per cent, respectively

Money Market

Sentiment: Bearish

Government securities market traded cautiously even as the market was flush with liquidity

Prices of government securities moved up by 4-5 paise towards the end of the trading session after falling by 20-30 paise during the day

The yield on the benchmark 10-year security closed at 8.23 per cent

Liquidity remained comfortable with call rates closing around 0.25 per cent

The market is expecting the inflation for the week ended June 8 to figure at 4.38 per cent