Re ends firmer at 44.19/$

MARKETS REPORT

Forex Market

Outlook:
The spot rupee is expected to open in the range of 44.20-25 to a dollar.

Sentiment:Bearish

The spot rupee opened and closed around 44.18/19 but reached an intraday low of 44.23/24 during the day following heavy correction in the equity market .

The annualised premium for six-month forward dollar closed at 2.99 per cent.

Money Market

Sentiment: Bearish

The market reacted negatively in response to the statements made by the RBI deputy governor on expected measures to be taken to control inflation.

Government securities fell by around 90 paise in the long end, while the short- and medium-term papers fell around 40-50 paise.

The yield on the 10-year benchmark paper closed at 7.90 per cent against 7.83 per cent on Monday.

Call rates ruled around Rs 6.60/6.65 per cent with the RBI absorbing around Rs 4000 crore from the market.

The RBI today raised the CRR by 50 basis points with the first tranche of 25 basis point hike coming into effect from February 17.