Markets Reports

Money market

Sentiment: Bullish

Yields on government papers dipped on Monday as some large investors returned after almost a week following a dip in inflation to below 4 per cent.

The underlying sentiment was, however, still cautious after the RBI absorbed some of the excess funds through open-market sales late last week.

The benchmark 10-year paper, the 7.27 per cent 2013, ended at 5.5293 per cent (5.5314 per cent).

Call rates remained unchanged in the range of 4.80 per cent to 5 per cent.

Forex market

Market Sentiment: Bullish

The rupee finished at a near-three-year high of 45.8500/8550 per dollar on the back of three days of bunched-up greenback supplies.

One-year forward premium finished six basis points lower at 1.88 per cent.

Outlook

The rupee is expected to hover in the 45.80-45.85 band tomorrow.