Re ends higher at 40.35/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 40.32-40 to a dollar.

Sentiment: Bullish

The spot rupee opened at 40.40/42 but moved up to close at 40.34/35 following heavy portfolio inflows.

The annualised premium on six-month and one-year forward dollars closed at 1.64 per cent and 1.77 per cent respectively.

Money market

Sentiment: Bullish:

Even as liquidity kept the sentiment buoyed, banks engaged in profit booking ahead of the twin auction and outflows on Friday.

Prices of government papers moved down by 10-60 paise across maturities.

The yield on the 10-year benchmark closed at 7.83 per cent against 7.76 per cent on Wednesday.

The liquidity continued to remain abundant with call closing around 0.5 per cent.