Re ends flat at 40.88/$

MARKETS REPORT

Forex Market

Outlook:
The spot rupee is expected to open in the range of 40.80-90 to a dollar.

Sentiment:Bearish

The spot rupee opened at 40.56/57 but closed at 40.87/88 following intervention by the RBI towards the end of the trading hours.

The annualised premiums for the six-month and one-year forwards closed at 5.42 per cent and 4.61 per cent, respectively, he said.

Money Market

Sentiment: Flat

The market remained rangebound since trading in the market was cautious.

The prices of government securities moved in a range of 3-5 paise across maturities. The yield on the 10-year benchmark closed at 8.15 per cent.

Liquidity ruled easy with call rate closing around 6.5 per cent.

The RBI received bids worth Rs 9,335 under its reverse repo but it absorbed only Rs 3,000 crore from the market .

The market feels that liquidity may tighten slightly during the week after the outflows towards excise tax outflows.