Re ends higher at 43.93/$

MARKETS REPORT

FOREX MARKET

Outlook
The spot rupee is expected to open in the range of 43.92/96 to a dollar on Tuesday.

Sentiment: Dull

With the Christmas break setting in, the rupee ended higher on dollar sales at 43.9325.

Forward were higher owing to importer demand with six-month and one-year premiums closing at 2.24 per cent and 1.59 per cent respectively.

Money market

Sentiment: Bearish

Advance tax flows and apprehension of an auction announcement for the next quarter kept the market on tenterhooks.

Liquidity crunch led to banks drawing Rs 3,500 crore from the RBI, while reverse repo bids were at Rs 1,500 crore.

The call rates touched 6 per cent.

Gilt prices across the board remained rangebound, while overall volume in the market was only Rs 1,000-odd crore.

The benchmark 7.38 per cent 2015 gilt closed at 6.74 per cent.