Re ends lower at 41.36/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 41.36-42 to a dollar on Friday.

Sentiment: Bearish

The spot rupee opened at 41.04-06 but lost during the day to close at a low of 41.34/36 to a dollar.

The six-month and one-year forward dollars closed at an annualised premium of 1.99 pr cent and 1.93 per cent respectively.

Money market

Sentiment: Bearish

The government securities reeled under fears of liquidity constraint.

The prices of government bonds fell by 40 paise to Re 1 across maturities.

The yield on the 10-year benchmark paper closed at 8.04 per cent against a closing of 7.98 per cent on Tuesday.

The RBI auctioned the two-year dated security under MSS at a cutoff yield of 7.99 per cent.

Call rates hovered around 6.10-6.20 per cent, while the RBI absorbed around Rs 30,000 crore from the market.