Re ends stronger at 44.20/$

MARKETS REPORT

Forex Market

Outlook:
The spot rupee is expected to open in the range of 44.16-20 to a dollar.

Sentiment:Dull

The spot rupee opened at 44.27/28 but closed at a high of 44.19/20 after reaching an intraday low of 44.31 to a dollar during the day. The appreciation was on the back of corporate inflows .

The annualised premium on six-month forward dollars closed at 3.87 per cent.

Money Market

Sentiment: Bearish

The auction announcement on Friday evening led to a negative sentiment in the government securities market.

Prices of government papers fell by 30 paise-Re 1.

The yield on the 10-year paper closed at 7.90 per cent against 7.80 per cent on Friday.

Call rates closed around 8/8.05 per cent whereas the RBI infused liquidity of Rs 14,000 crore into the system.

Central Board of Trustees was one of the major buyers of the government papers in the market on Monday.