Re ends weaker at 40.93/$

MARKETS REPORT

Forex Market

Outlook:
The spot rupee is expected to rule in the range of 40.86-94 to a dollar on Thursday.

Sentiment:Bullish

The spot rupee opened at 40.83/84 but closed at a low of 40.92/93 to a dollar.

The annualised premium for six-month and one-year forward dollars worked out to 5.53 per cent and 4.60 per cent, respectively.

Money Market

Sentiment: Bullish

Easy liquidity led to brisk trading by bond traders in the government securities market.

The yield on the 0-year benchmark paper closed at 8.08 per cent compared with 8.10 per cent on Tuesday.

Prices of government securities rose by 20-30 paise across maturities.

Liquidity remained comfortable since the call rates fell to 3 per cent .

The market is lurking under the fear of MSS announcement or CRR hike to absorb the excess liquidity.

The RBI received bids worth Rs 34,000 crore under reverse repo mechanism to absorb excess liquidity.

The yield on the 91-day t-bill worked out to 7.60 per cent against 7.68 per cent last week, whereas 7.55 per cent 2010 auctioned under MSS fetched a yield of 8.03 per cent as against 8.16 per cent last time.