Re recoveres to 46.20/$

MARKETS REPORT

Outlook: The spot rupee is likely to open in the range of 46.20 against the greenback

Sentiment: Bearish

• The spot rupee came off the 16-month low of 46.33/34 to close at 46.19/20 against the dollar.
• Premiums on six-month forwards and 12-month forwards closed at 0.79 per cent and 0.64 per cent, respectively

Money market

Sentiment: Bullish

• The market witnessed a mild rally as the auction met market expectations
• Yield on nine-year government stock stood at 6.98 per cent
• Cut-off yield on 8.07 per cent 2017 paper stood at 7.24 per cent and that of 7.40 per cent 2035 paper was higher than expected at 7.555 per cent. Cut-off prices were at Rs 106.24 and Rs 98.16, respectively
• Call rates closed at 5.30/5.35 per cent
• RBI accepted 22 bids aggregating Rs 17,460 crore under liquidity adjustment facility
• It accepted another 21 bids aggregating Rs 9,780 crore at 5.25 per cent under second liquidity adjustment