Re ends weaker at 45.35/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 45.31-37 to a dollar.

Sentiment: Bearish

The spot rupee opened at 45.21 and lost during the day to close at 45.34/35 to a dollar.

The annualised premium on six-month and one-year forward dollars closed at 1.87 per cent and 1.72 per cent, respectively.

Money market

Sentiment: Bullish

The prices of government securities shot up following heavy buying demand by banks for long-term papers.

The trigger for demand was falling yields in US treasury papers.

Prices in long-term papers went up by almost 50-60 paise, whereas short-and medium-erm papers moved up by 30-40 paise.

The yield on 10-year paper closed at 7.50 per cent.

Call rates remained tight at 7/7.25 per cent with the RBI absorbing around Rs 5000 crore.