Re ends stronger at 40.83/$

MARKETS REPORT

Forex Market

Outlook:
The spot rupee is expected to open in the range of 40.80-87 to a dollar.

Sentiment:Bullish

The rupee opened at 40.95/96 but closed at a high of 40.82/83 with aggressive selling of dollars by foreign banks as proceeds of ADRs and FII inflows.

The annualised premium for six-month and one-year forward dollars closed at 2.86 per cent and 2.81 per cent respectively.

Money Market

Sentiment: Bullish

The market players started buying at low levels and this triggered a small rally in government securities.

The prices of securities went up by 30-35 paise across maturities.

The yield on the 10-year benchmark paper closed at 8.18 per cent.

Liquidity remained tight with the call money closing at 8 per cent.

The corporate bond market did not witness any activity and the spread of 10- year bond and gilt remained at 170 basis points.