Re ends lower at 40.67/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 40.48-53 to a dollar.

Sentiment: Bullish

The spot rupee opened at 40.51/52 but fell to a low of 40.71/72 following heavy NDF arbitrage before closing for the day at 40.66/67 to a dollar.

The annualised premium for six-month and one-year forward dollars closed at 2.64 per cent and 2.74 per cent respectively.

Money market

Sentiment: Bearish

Apprehension of a CRR hike marred market sentiment.

Prices of government securities fell by around 20-25 paise across maturities .

The yield on the 10-year benchmark security closed at 8.18 per cent .

Call rates closed around 0.05 per cent amidst ample liquidity.

The RBI received bids worth Rs 1,10,000 crore from the market under reverse repo.

The RBI announced a cut-off yield of 7.23 per cent and 7.69 per cent for 91-day and 364 day treasury bills as per the market expectation.