Re ends lower at 40.95/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 40.92-41 to a dollar.

Sentiment: Bearish

Heavy arbitrage in the NDF market and dollar demand by state-run power company led the spot rupee to close at 40.94/95 after opening at a high of 40.86/87 and reaching an intraday low of 41.08 to a dollar.

The annualised premiums for the six-month and one-year forward dollars closed at 3.23 per cent and 2.84 per cent, respectively.

Money market

Sentiment: Bearish

The prices of government securities remained rangebound during the day.

Trading was restricted to the ten-year benchmark 7.49 per cent 2017 paper which witnessed prices falling by almost 15 paise.

The yield on the ten-year benchmark paper closed at 8.41 per cent as against a closing of 8.36 per cent on Tuesday.

Call rates closed around 3.50 per cent amidst comfortable liquidity conditions.

The cut-off yield in the 91-day t-bill auction figured at 7.76 per cent as against 7.72 per cent at the Monday auction.