Re ends at 43.74/$

MARKETS REPORT

Forex market

Outlook: The spot rupee is expected to open in the range of 43.75/77 to a dollar on Tuesday.

Sentiment: Bearish

• The spot rupee opened stronger at 43.60/61 to a dollar and closed at 43.73/74 as the dollar strengthened against the yen.
• The six-month forward premium closed at 0.47 per cent, while the 12-month premium closed at 0.41 per cent.

Money market

Sentiment: Bearish

• Prices of government securities rose by 5-10 paise backed by a fall in crude oil prices coupled with softening of yields on US treasury notes.
• The 7.37 per cent 2014 government stock closed at 6.97 per cent. The 10-year bond was illiquid today.
• The market expects the cash crunch to ease following the cancellation of Wednesday's auction of treasury bills under the market stabilisation scheme.
• Call rates fell to 6.30/6.40 per cent in a cash-tight market, with reverse repo bids aggregating to Rs 835 crore.
• RBI infused Rs 1900 crore into the call money market at 6.25 per cent through the repo window.