Re ends stronger at 44.19/$

MARKETS REPORT

Forex Market

Outlook:
The spot rupee is expected to open in the range of 44.15-20 to a dollar.

Sentiment:Bullish

The spot rupee opened at 44.27 but moved to an intraday low of 44.32 before reaching a high of 44.18/19 to close the day following heavy selling by corporates.

The annualised premium for six-month forward dollars closed at 3.74 per cent.

Money Market

Sentiment: Bearish

Statements made by the finance ministry promulgating the ordinance on SLR triggered a fresh wave of selling in the market.

Prices of government securities fell by 30-70 paise across maturities.

The yield on 10-year benchmark paper closed at 7.80 per cent against a closing of 7.76 per cent on Tuesday.

Call rates ruled around 8.10 per cent while the RBI injected around Rs 12,000 crore into the system.

At the auction, the yield on the 91-day t-bill continued to remain at 7.14 per cent, while the 364-day t-bill witnessed the cutoff yield being raised from 7.18 to 7. 27 per cent.