Re ends lower at 40.97/$

MARKETS REPORT

Forex market

Sentiment: Bearish

Outlook
The spot rupee is expected to open in the range of 40.90-41 to a dollar

The spot rupee opened at 40.78 but fell to close at a low of 40.97 to a dollar following dollar demand by oil companies, PSU and foreign banks.

The annualised premiums on the six-month and one-year forward dollars closed at 4.67 per cent and 4.16 per cent, respectively.

Money market

Sentiment: Bullish

The prices of government securities perked up following fresh trading interest in SLR papers.

The yield on the ten-year benchmark paper closed at 8.14 per cent.

The prices of papers went up by 30-40 paise.

Call rates remained tight at 9 per cent following outflows towards auction.

The RBI infused liquidity to the tune of Rs 24,000 crore into the market.

The market is cautious towards the auction of MSS bonds for Rs 6,000 crore on Wednesday.