Re ends stronger at 43.57/$

MARKETS REPORT

Forex Market

Sentiment:Volatile

The spot rupee opened at 43.79/80 but appreciated to close at 43.57 backed by corporate sale of dollars.

Annualised premiums for the six-month and one-year dollars closed at 3.94 per cent and 3.35 per cent, respectively.

Money Market

Sentiment: Lacklustre

Market conditions turned bearish in anticipation of liquidity conditions next week and higher inflation data.

The prices of government securities rose by 7-10 paise across maturities.

The yield on the ten-year paper closed at 7.94 per cent.

Call rates closed around 10-12 per cent while the RBI infused around Rs 42,000 crore into the market.

Contrary to the market expectation, the RBI announced the auction of 6.65 per cent 2009 paper to mop up around Rs 9,000 crore from the system under MSS.