Re ends higher at 44.74/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the 44.71-44.76 band against the greenback

Sentiment: Bullish

The spot rupee reached an intra-day high of 44.72"�44.73 after opening at 44.85-44.86 against the dollar following dollar sales by foreign banks on behalf of their institutional clients

The annualised premium for six-month and one-year forward dollars closed at 1.74 per cent and 1.68 per cent, respectively

Money market

Sentiment: Bullish

The government securities market rallied following the statement of the finance minister on controlling inflation through fiscal measures

The gilt prices moved up by 30-40 paise in the short- and medium-term papers while at the long end, the prices shot up by more than 50 paise

There was good demand seen for the papers auctioned last week

Improvement in liquidity was another trigger for the market to go up

The yield on the ten-year paper moved down to 7.61 per cent as against a high of 7.65 per cent seen on Monday

The call rates ruled around 6.75-6.80 per cent with the RBI absorbing around Rs 8,000 crore from the market.