Re ends lower at 40.42/$

Forex market

Outlook:
The spot rupee is expected to open in the range of 40.39-45 to a dollar.

Sentiment: Bullish

The spot rupee opened at 40.48 but sale of dollars by corporates and exporters led to a closing at 40.4150/40.42 to a dollar.

Annualised premiums on six-month and one-year forward dollars closed at 1.75 per cent and 1.80 per cent, respectively.

Money markets

Sentiment: Bullish

Liquidity of Rs 52000 crore absorbed by the RBI perked up market sentiment leading to brisk buying by banks.

Prices of government securities went up by 5-25 paise across maturities.

The yield on the benchmark 10-year paper closed at 7.86 per cent.

Call rates moved up to close around 6 per cent after reeling at a low of 0.10/0.20 per cent for last few weeks.

Interest rates on the three-month certificate of deposits and commercial papers have moved from low of 5-5.5 per cent to 7/7.5 per cent following concern on liquidity.

The cap of Rs 6000 crore imposed by the RBI for accepting bids under reverse repo was removed today .