Re ends slightly weaker at 46.15/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 46.11-16 to a dollar.

Sentiment: Bearish

The spot rupee opened at 46.13/14, rose to 46.09 following inflows but fell to close at 46.14/15 tracking a weaker yen against dollar.

The annualised premium on six-month and one-year dollars closed at 1.38 per cent and 1.34 per cent respectively.

Money market

Sentiment: Bullish

Government securities fell by 5-10 paise after opening higher.

Liquidity was tight owing to outflows towards advance taxes with the RBI absorbing only Rs 3000 crore.

Call rates shot up to 6.60 per cent against the usual range of 6.05-6.10 per cent, whereas the market borrowed at 6.30 per cent from the CBLO market.

Volumes in CBLO went up to around Rs 20,000 crore against Rs 15,000 crore last weekend.

Banks instead of putting funds at 6 per cent in reverse repo, preferred to lend in call market after borrowing from the CBLO.

The yield on 10-year paper closed at 7.78 per cent.