Re ends stronger at 44.3/$

MARKETS REPORT

Forex Market

Outlook:
The spot rupee is expected to open in the range of 43.27-43.32 against the dollar

Sentiment:Bullish

The spot rupee opened at 43.53-43.55 but appreciated to close at 43.29-43.30 following dollar selling by foreign banks to raise rupees

The annualised premiums for six-month and one-year forward dollars closed at 5.17 per cent and 4.02 per cent, respectively

Money Market

Sentiment: Bearish

Liquidity tightness led to cautious trading and rising yields in the government securities market

Prices of government securities went up by 25-40 paise across maturities

Yield on the ten-year paper closed at 7.99 per cent

Call rates ruled higher at 14-16 per cent whereas the RBI infused around 37,000 crore into the market

Foreign banks sold dollars to raise rupees at currency swap rates of 25-40 per cent