Re ends higher at 40.86/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 40.75-85 to a dollar on Monday.

Sentiment: Bullish

The rupee opened at 41.02-05 but gained during the day to close for the day at 40.85-86 after reaching an intraday high of 40.93-94 to a dollar.

The annualised premium for six-month and one-year dollars closed at 5.83 per cent and 4.76 per cent respectively.

Money market

Sentiment: Bearish

The market traded cautiously on the back of apprehension on announcement of dated security auction.

Prices of government securities moved in a band of 5-10 paise.

The yield on the 10-year paper closed flat at 8.16 per cent.

Liquidity remained comfortable with call rates closing at 7/7.5 per cent.

Liquidity infused by the RBI came down substantially from Rs 7500 crore on Thursday to Rs 815 crore on Friday.

The government has changed the benchmark paper and announced the auction of 7.49 per cent 2017 for Rs 6000 crore.