Re ends marginally lower at 40.41/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is likely to open at Rs 40.40/41.

Sentiment: Bullish

The rupee opened at Rs 40.41/42 and closed around Rs 40.40/41.

The RBI intervention and demand from oil companies kept the rupee weak.

The annualised premium for the six-month and one-year forwards closed lower at 1.86 per cent and 1.98 per cent, respectively.

Money market

Sentiment: Bearish

Call rates eased further on ample liquidity in the money market. It ruled between 0.15-1.00 per cent.

The RBI has been in the forex market to mop up dollars to stem rupee rise. The RBI move has released more rupee resources in the system, adding to liquidity in the system.

Flush with rupee resources, banks put bids to place funds with RBI in excess of Rs 35,000 crore under liquidity adjustment facility.

The total turnover in the government securities today dipped to Rs 5,705 core from yesterday's Rs 7,700 crore, according to data available with negotiated trade system. Traded volume was about Rs 14,200 crore on Monday. The maximum volume was in the 7.49%, 7.99%, both maturing in 2017, and 6.65% 2009 bonds.

The 10-year government paper (7.49% 2017) closed at Rs 97.06. The yield on 10-year paper stood at 7.92 per cent.