Re ends higher at 44.70/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 44.68-74 to a dollar.

Sentiment: Bearish

The spot rupee was rangebound, opening and closing at 44.70, after reaching an intraday low of 44.75 to a dollar.

The annualised premium for six-month and one-year forward dollars closed at 1.92 per cent and 1.78 per cent respectively

Money market

Sentiment: Bullish

The prices of government securities moved up following improvement in domestic liquidity following intervention by the RBI.

Prices of medium- and long-tenure papers moved up by 5-10 paise.

There was brisk trading in the one-year treasury bill that witnessed yields falling by 3 basis points from 6.98 per cent to 6.95 per cent.

The yield on 10-year paper closed at 7.44 per cent.

The RBI absorbed around 23,400 crore from the market, while call rates softened to 6.20/6.40 per cent