Re ends tad lower at 40.92/$

MARKETS REPORT

Forex markets

Outlook: The spot rupee is expected to open in the range of 40.88-94 to a dollar.

Sentiment: Bearish

The spot rupee opened at 40.93/ 94 but came down to 41.01 with the dollar demand triggered from the NDF market before closing at 40.91/92 to a dollar.

The annualised premiums for the six-month and one-year forward dollars closed at 2.92 per cent and 2.78 per cent, respectively.

Money market

Sentiment: Bearish

The liquidity situation started showing signs of tightness and this weighed on the market sentiment.

Prices of government securities fell by 10-25 paise across maturities.

The yield on the ten-year benchmark paper closed at 8.20 per cent as against 8.18 per cent on Monday.

Call rates closed around 4.5 per cent even as the RBI received bids worth Rs 67,000 crore under reverse repo.

The market is expecting a cut-off yield of 7.40 per cent for 91-day t-bill at the auction to be held on Wednesday.