Re ends steady at 40.53/$

MARKETS REPORT

Forex Market

Outlook:
The spot rupee is expected to open in the range of 40.48-53 to a dollar.

Sentiment: Bullish

The spot rupee opened and closed around 40.51/53 after touching the day's low of 40.56/57 to a dollar.

The annualised premiums for the six-month and one-year forward dollars closed at 2.44 per cent and 2.59 per cent, respectively .

Money Market

Sentiment: Bearish

Despite abundant liquidity in the system, the government securities prices market remained rangebound in the band of 10 paise.

After the announcement of the auction results, however, it fell by 20-30 paise across maturities so as to realign the gilt yields with the new auction cut-off yields.

The yield on the ten-year paper closed at 8.16 per cent while during the day it was ruling around 8.14 per cent.

Liquidity remained extremely comfortable with the call rates closing around 0.25/0.30 per cent.

The RBI announced a cut-off yield of 8.18 per cent for 7.49 per cent 2017 security and 8.52 per cent for 8.33 per cent 2036.