Re ends lower at 42.02/$

MARKETS REPORT

Forex market

Outlook
The spot rupee is expected to open in the range of 41.95-42 to a dollar.

Sentiment: Bullish

The spot rupee opened stronger at 41.87/88 against a closing of 41.97/99 on Tuesday but fell to close at a low of 42/42.02 following heavy dollar purchases by oil companies.

The annualised premium on six-month and one-year forward dollars closed around 6.08 per cent and 4.72 per cent.

Money market

Sentiment: Bearish

The government securities market witnessed demand from banks for SLR requirement.

The yield on the 10-year benchmark paper closed around 8.07 per cent.

The prices of securities moved up by 20-30 paise across maturities..

Liquidity conditions eased owing to government expenditure.

Call rates closed around 10.50 per cent against highs of 17 per cent seen on Tuesday.

The 91-day treasury bill was auctioned at a cut off yield of 7.47 per cent as against 7.36 per cent last week.