Re ends higher at 40.66/$

MARKETS REPORT

Forex market

Outlook
The spot rupee is expected to open at 40.6465 level.

Sentiment: Dull

The rupee opened at Rs 40.6465 and closed around Rs 40.65/66.

The annulised premium for the six-month forwards closed at 2.10 per cent.

Money market

Sentiment: Bullish

The money market remained closed on account of annual closing of the Reserve Bank of India.

Liquidity has improved on capital flows in the market. The government bond market rallied by 30-50 paise in the absence of major sterlisation and expectations of comfortable liquidity conditions.

The 10-year government paper (8.07 per cent 2017) closed at Rs 99.87. The yield on the 10-year paper stood at 8.09 per cent.