Re ends stronger at 43.45/$

MARKETS REPORT

Forex Market

Outlook:
The spot rupee is expected to open in the range of 43.40-45 against the dollar

Sentiment:Bullish

Statements of the Chinese government to sell dollars and heavy dollar selling by Indian banks to generate rupees resulted in the spot rupee closing at 43.44/45 after opening at 43.59/63 against the dollar

The annualised premiums for the six-month and one-year forward dollars closed at 4.70 per cent and 3.73 per cent, respectively

Money Market

Sentiment: Bullish

The sentiment in the government securities market perked up following the calling off of the bank strike and statements released by the RBI and finance ministry

Prices of government securities moved up by 20-25 paise from the day's low

Yield on the ten-year paper closed at 8.03 per cent compared with the day's high of 8.08 per cent

Banks' rush for liquidity sent call rates zooming to a high of 70-80 per cent before closing at 60 per cent

The RBI infused liquidity to the tune of around Rs 43,075 crore

The RBI absorbed only Rs 1,352 crore through the treasury bill auction as against the notified amount of Rs 3,500 crore at a higher cut-off yield of 7.96 per cent for 91-day and 8.20 per cent for 182-day t- bill.