Re ends higher at 40.62/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 40. 75-80 to a dollar.

Sentiment: Bearish

The spot rupee opened at 40.76/77 but closed higher at 40.61/62 after reaching an intraday low of 40.78/79 to a dollar.

The annualised premium for six-month and one-year forward dollars closed at 2.48 per cent and 2.07 per cent respectively.

Money market

Sentiment: Bullish

The market discounted fears of announcement of CRR hike and engaged in brisk trading.

Prices of government securities across maturities went up by 20-30 paise.

The yield on the 10-year benchmark paper closed at 8.08 per cent against 8.13 per cent on Wednesday.

Liquidity was extremely comfortable since the Reserve Bank of India received bids worth around Rs 62,000 crore under its reverse repo route.

Call rates closed around 1 per cent.