Re ends weaker at 44.21/$

MARKETS REPORT

Forex Market

Outlook:
Backed by inflows, the spot rupee is expected to open in the range of 44.14-44.18 to a dollar.

Sentiment:Bullish

The spot rupee opened higher at 44.16/17 but dollar buying by RBI saw the currency close at 44.20/21 .

The annualised premium for six-month forward dollar closed at 3.24 per cent.

Money Market

Sentiment: Bullish

Improved liquidity led to buying demand in government securities.

Prices of securities were rangebound in the 5-10 paise band across maturities.

The yield on 10-year paper closed at 7.89 per cent against 7.92 per cent last week.

Call rates ruled easy at 6.10/6.20 per cent, while the RBI absorbed around Rs 18,480 crore from the market.

Market dealers, towards the end of the trading session feared liquidity tightening measures such as increased notified amount of MSS.