Re ends weaker at 46.31/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 46.28-32 to a dollar.

Sentiment: Bearish

Weak yen and a strong dollar globally led to the spot rupee open a tad lower at 46.26/27 after closing for last week at 46.24/25. It further fell to close at 46.30/31.

The annualised premiums for the six-month and one-year forwards closed at 1.40 per cent and 1.35 per cent, respectively.

Money market

Sentiment: Bullish

Soft oil prices, surplus liquidity and lack of any immediate bond issuance cheered the market.

However, profit taking by the banks those who had invested in the market last week led to fall in gilts prices.

Gilts prices across maturities fell by 20-25 paise.

The yield on the ten-year paper closed at 7.70 per cent after closing at 7.69 per cent last Friday.

Call rates ruled around 6.05-6.10 per cent with the RBI absorbing around Rs 34,000 crore through reverse repo.

The reverse repo bids declined as banks started to set aside funds for advance taxes.