Re ends higher at 42.83/$

MARKETS REPORT

Forex market

Outlook:
Rupee is likely to open at 42.80 levels tomorrow.

Sentiment: Cautious

Spot rupee was traded at 42.94/96 in opening transactions and closed at Rs 42.83.

The annualised premium for six-month and one-year dollars closed at 5.65 per cent and 4.20 per cent, respectively.

Money market

Sentiment: Cautious

Liquidity remained comfortable on Thursday.

The ample liquidity in the system look to be temporary as the government bond auction (Rs 10,000 crore) and the cash reserve ratio (CRR) rise together are likely to suck out Rs 17,000 crore from the system this week.

Government bond prices slipped on profit sales today, as RBI set higher-than-expected cut-off yields at its auctions.

The yield on 10-year government paper (8.07 per cent 2017 bond) at the close was 8. 06 per cent against 8.05 per cent yesterday.

Call rates eased and remained in the 1.75-5.50 per cent range. RBI absorbed Rs 2,999 crore on a net basis through LAF though banks had put bids to park over Rs 51,600 crore.