Re ends tad lower at 40.36/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 40.32-38 to a dollar.

Sentiment: Flat

The spot rupee opened at 40.34/ 36 and closed a tad lower at 40.35/ 36.

The annualised premiums on the six-month and one-year forward dollars closed around 1.39 per cent and 1.64 per cent, respectively.

Money market

Sentiment: Bullish

Excess liquidity in the system further brought down the yields on the government securities amid brisk trading.

The yield on the ten-year 7.49 per cent 2017 paper closed at 7.85 per cent as against 7.91 per cent on Monday.

The prices of government securities went up by 40-45 paise across maturities.

Call rates continued to rule around 0.25 per cent with the RBI receiving bids to the tune of around Rs 60,000-70,000 crore under reverse repo.

The government will auction treasury bills of around Rs 4,000 crore and MSS bonds of Rs 5,000 crore on Wednesday for absorbing excess liquidity.