Re ends weaker at 40.41/$

MARKETS REPORT

Forex Market

Outlook:
The spot rupee is expected to open in the range of 40.35-42 to a dollar.

Sentiment:Bullish

The spot rupee opened at 40.37/38 but fell to a low of 40.44/45 following heavy buying by corporates before closing at 40.40/41 to a dollar.

The annualised premiums for six-month and one-year forward dollars closed at 1.13 per cent and 1.54 per cent, respectively.

Money Market

Sentiment: Bullish

Government papers witnessed a sharp increase in prices following abundant liquidity in the system.

Prices moved up in a range of 40-80 paise across maturities.

The yield on the 10-year paper closed at 7.76 per cent against 7.85 per cent on Tuesday.

Call rates closed below 0.25 per cent .

The 91-day and 364-day treasury bills got auctioned at a cut-off rate of 4.50 per cent and 6.58 per cent on Wednesday against 5.12 per cent and 7.16 per cent last week.

The government paper 6.65 per cent 2009, auctioned under MSS, fetched a cut-off yield of 7.08 per cent.