Re ends marginally higher at 40.74/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open tomorrow in the range of Rs 40.73-74 to a dollar.

Sentiment: Dull

The rupee opened at Rs 40.70/72 and closed around Rs 40.73-74.

The annualised premiums for the six-month and one-year forwards closed at 2.82 per cent and 2.76 per cent, respectively.

Money market

Sentiment: Cautious

Liquidity remains comfortable despite the government bond auctions of Rs 22,000 crore last week and advance tax flow. The capital flows and Reserve Bank India intervention is keeping liquidity high. The prospects of some sterilisation action such as MSS issuance are not ruled out.

The price of the 10-year government paper declined by about 15 paise. The prices at long end dipped by 20-25 paise.

The yield on the 10-year paper closed at 8.23 per cent compared with the closing of 8.20/21 per cent yesterday.