Re ends weaker at 40.87/$

MARKETS REPORT

Forex Market

Outlook:
The spot rupee is expected to open in the range of 40.83-90 to a dollar.

Sentiment:Bearish

The spot rupee fell to close at a low of 40.86/87 after opening at 40.54 /55 following a heavy dollar demand from oil companies during the month end.

The annualised premiums for the six-month and one-year forward dollars closed at 2.03 per cent and 2.50 per cent, respectively.

Money Market

Sentiment: Flat

The market sentiment remained jittery following apprehension of CRR hike or announcement of MSS bonds by the RBI to tackle surplus liquidity.

The prices of government securities moved in a range of 5 paise across maturities.

The yield on the ten-year benchmark security closed at 8.13 per cent as against 8.09 per cent on Tuesday.

Liquidity was abundant with the RBI receiving bids worth Rs 30,000 crore from the system.

Call rates closed at 1 .25 per cent following easy liquidity conditions.