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Outlook:
The spot rupee is expected to open in the range of 44.06-11 to a dollar. |
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| Sentiment:Bullish |
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Strong FII inflows led to the rupee opening at 44.12/13 and reaching an intraday high of 44.07 before closing flat at 44.11/12 against dollar.
Concerns on auction led to the premium on forward dollars to close higher.
The annualised premium for six-month forward dollars closed at 3.24 per cent. |
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| Money Market |
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Sentiment: Bearish The market traded cautiously on the eve of government security auction on Friday.
The price of government securities fell by 30- 80 paise across maturities.
The yield on 10-year paper closed at 7.81 per cent.
Liquidity in the market has improved and the Reserve Bank of India absorbed around Rs 3000 crore from the market.
Call rates ruled in the range of 6.75-7 per cent .
The market is concerned since the paper to be auctioned on Friday - 7.37 per cent 2014 is perceived to be illiquid. This could fetch a higher cut off yield in the range of 7.75-7.80 per cent. |
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