Rupee ends lower at 46.47/48

MARKETS REPORT

Outlook:
The spot rupee is expected to open in the range of 46.45-46.50 against the dollar on Monday.

Sentiment: Bearish

• The spot rupee, which opened at 46.50-46.51 on Friday, strengthened to 46.34 on dollar selling by RBI. However, dollar demand at these levels pulled down the currency to close at 46.47-46.48.
• Forward premiums tracked the rupee with the six-month and one-year premiums closing at 2.62 per cent and 2.27 per cent, respectively.

Money market

Sentiment: Bullish

• Government security prices recovered on Friday with a 50-60 paise gain across maturities as the inflation rate remained at 6.52 per cent.
• The 10-year benchmark gilt, the 7.37 per cent 2014, closed lower at 6.17 per cent compared with 6.28 per cent on Thursday.
• Call rates were at 4.20-30 per cent, while repo outstandings hovered around Rs 60,000 crore.
• Corporate bonds rallied with the spread between the five-year gilt and the triple A paper continued to be 95 bp.