The rupee ended weaker at 47.9050/9150 to a dollar compared with the previous close of 47.8850/8925. Forward premiums, meanwhile, rose sharply on paying interest and cancellation of forward contracts.
Outlook
Movements in the forex market will depend on what the UN weapons inspectors say in their report on Iraq. The rupee could trade in the 47.88-47.92 band.
Sentiment continues to be nervous in gilts mkt
Yields on government securities rose on account of mounting fears over the US-Iraq war. Buyers were absent while sellers pushed the market lower only to cover at lower levels later.
The benchmark 9.81 per cent 2013 security, which on Saturday was dealt at 5.971 per cent (Rs 129.30), opened at an yield of six per cent (Rs 129) and rose to 6.05 per cent (Rs 128.50) before finishing lower at 6.03 per cent (Rs 128.70).
The 7.40 per cent 2012 paper opened at 5.94 per cent (Rs 110.30), edged up to 6.09 per cent (Rs 109.15) and was last dealt at 6.04 per cent (Rs 109.50).
The benchmark five-year Hindalco paper was quoted at 6.18/6.22 per cent compared with Saturday's close of 6.20 per cent.
Call money rates closed easy at 5.40-5.50 per cent compared with the previous close of 5.50-5.55 per cent.
Outlook
The gilts market will be cautious as the UN weapons inspectors will pronounce their judgement on whether Iraq possesses weapons of mass destruction. Call money rates will be easy.
