Re ends higher at 44.35/$

MARKETS REPORT

Forex market

Outlook
The spot rupee is expected to open in the range of 44.31-37 to a dollar on Friday.

Sentiment: Bullish

Panic dollar selling by the custodian banks and corporate led to the spot rupee closing at a high of 44.34-35 after opening at a low of 44.52-53 to a dollar.

The annualised premia for the six-month and the one-year forward dollars closed at 3.13 per cent and 3.01 per cent respectively.

Money market

Sentiment: Bearish

The prices of government securities fell by 15-25 paise across maturities following concern on series of auctions to be held.

While auction of dated securities worth Rs 7,000 crore will be held on Friday, the RBI has also announced state government auction to absorb around Rs 2,284 crore on March 13.

High cut of yield announced on the auction of the treasury bills added to the bearish sentiment.

The yield on the ten-year benchmark paper closed at 8.01 per cent.

The liquidity was abundant with the RBI receiving bids worth Rs 20,000 crore in reverse repo.

The call rates closed around 5.50 per cent.