Rupee closes at four-month low

MARKETS REPORT

Forex market

Sentiment: Bearish

• The rupee close at a four-month low of 45.62/63 per dollar on dollar buying by foreign banks and heavy sales by foreign institutional investors.
• Discounts on forward dollars widened. Annualised discount on six-month and one-year dollars closed at 1.17 per cent and 0.56 per cent, respectively.

Money market

Sentiment: Bearish

• Prices of government securities plunged by Re 1 in the long end and 40 paise in the medium end.
• The ten-year benchmark gilt, 7.37 per cent 2014, closed at 5.25 per cent from 5.1850 per cent on Thursday.