Rupee ends week on a high

MARKETS REPORT

Forex market

Outlook: The rupee is expected to open around 45.09/1250 against the greenback on Monday.

Sentiment: Bullish

• The rupee opened at 45.20/22 per dollar and ended higher at 45.1150/1250 on the back exporters' greenback sales.
• Premiums on forward dollars closed higher on importer hedging and sell-buy swaps by RBI to avoid liquidity mismatches next week.
• Annualised premiums on six-month and one-year forward dollars closed at 0.4 per cent and 0.35 per cent respectively.

Money market

Sentiment: Bullish

• Despite higher headline inflation at 5.02 per cent, government security prices went up on expectations of prudent fiscal measures by the government.
• Prices of long-term securities went up by 20-25 paise, while those of medium-term gilts moved up by almost 10-15 paise.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, ended flat at 5.28 per cent.
• Call rates went up to 6.5 per cent due to banks' liquidity mismatches.