Rupee ends lower at 45.88/$

MARKETS REPORT

Forex market

Outlook
The rupee is expected to open between 45.85 and 45.88 against the greenback.

Sentiment: Bullish

The rupee closed lower at 45.87/88 per dollar. It hit an intraday low of 45.9750 on the back of importer demand but clawed back as corporates sold dollars.

Premiums on forward dollars closed lower. Annualised premiums on six-month and one-year dollars closed at 1.64 per cent and 1.43 per cent respectively.

Money market

Sentiment: Cautious

Trading in the money market was cautious on Thursday ahead of the inflation data to be released on Friday.

Gilt prices across maturities ruled in the range of 5-10 paise. n The 10-year benchmark 7.37 per cent 2014 gilt closed at 6.11 per cent.

The sentiment remained bullish with the RBI's rejection of bids at the 91-day T-bill auction on Wednesday which were mostly perceived to be market stabilisation scheme bids.

The statements of RBI deputy governor also soothed the market.