Re ends stronger at 40.60/$

MARKETS REPORT

Forex Market

Outlook:
The spot rupee is expected to open in the range of 40.55-63 to a dollar.

Sentiment:Bullish

The decision of the Chinese authorities to revise the trading band for the yuan has triggered an appreciation in rupee.

It opened at 40.61 and went up to an intraday high of 40.51 before closing for the day at 40.59/60 to a dollar following dollar buying by nationalised banks. buying.

The annualised premia for six months and one year forward dollars closed at 4.15 per cent and 3.44 per cent respectively.

Money Market

Sentiment: Bearish

The trading started on a bullish note but the momentum stalled since market engaged in profit taking.

The prices of government securities fell by 20-30 paise across maturities.

The yield on the ten-year benchmark paper closed at 8.12 per cent.

Liquidity remained comfortable with call rates ruling around 7.50/7.75 per cent.

The RBI infused only Rs 250 crore into the market.

The RBI will auction 7.38 per cent 2015 and 8.35 per cent 2022 for Rs 5,000 crore and Rs 3,000 crore, respectively, on May 25.