Re ends low at 46.40/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 46. 38-43 to a dollar.

Sentiment: Bearish

The spot rupee opened at 46.18 but closed at a low of 46.40 to a dollar following dollar demand by oil companies and custodian banks and NDF arbitrage.

The premium on six-month and one-year forward dollars closed at 1.09 per cent and 1.21 per cent respectively.

Money market

Sentiment: Bearish

Prices of government securities remained rangebound in a narrow band of 5-10 paise.

The yield on the 10-year benchmark closed at 8.12 per cent.

Call rates closed at 5.8/5.9 per cent with the RBI absorbing around Rs 39,000 crore from the system.

Banks continued to shy away from corporate bonds as a result ICICI Bank's bonds of Rs 2000 crore was entirely subscribed by the EPFO.