Re ends weaker at 44.50/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 44.46-50 to a dollar.

Sentiment: Bearish

The spot rupee opened at 44.45-46 to a dollar, but fell to close at 44.49-50 after reaching an intraday low of 44.57.

The annualised premia for six-month and one-year forward dollars closed at 2.91 per cent and 2.90 per cent, respectively

Money market

Sentiment: Bullish

The government securities market closed flat due to lack of triggers.

The yield on the ten-year paper closed at 7.95 per cent.

Liquidity was comfortable with call rates ruling around 5.45-5.50 per cent.

Even as the RBI absorbed bids worth Rs 3,000 crore under reverse repo, the market submitted bids of around Rs 25,700 crore.

The cut-off yields on both 91-day and 182-day t-bill worked out higher at 7.47 per cent and 7.74 per cent as against the market expectation of 7 per cent and 7.20 per cent, respectively.