Re ends firmer at 40.87/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 40.80-92 to a dollar on Monday.

Sentiment: Bullish

Dollar selling by foreign banks towards the end of the trading session led the spot rupee to appreciate and close at 40.85/87 after opening at 40.90 and reaching an intraday low of 40.97/98 to a dollar.

The annualised premiums for the six-month and one-year forward dollars closed around 3.14 per cent and 2.88 per cent, respectively.

Money market

Sentiment: Bullish

Excess liquidity in the market despite an outflow of Rs 22,000 crore perked up market sentiment and triggered trading in select government securities.

The prices of select benchmark securities moved up in a range of 20-40 paise.

The yield on the ten-year benchmark security moved down to 8.28 per cent as against 8.33 per cent on Thursday.

Liquidity remained comfortable with call rates closing around 3 per cent.

The RBI received bids worth Rs 69,000 crore to absorb excess liquidity under reverse repo.

The RBI announced a cut-off yield of 8.35 per cent at the auction of 7.49 per cent 2015 paper as against the market expectation of 8.38 per cent.