Re ends higher to close at 45.16/$

MARKETS REPORT

Outlook
The rupee is expected to open between 45.13 and 45.18 against the greenback on Tuesday.

Sentiment: Bullish

The rupee opened at 45.20/21 per dollar and higher at 45.15/16 due to dollar inflows.

Premiums on forward dollars came off. Annualised premiums on six-month and one-year dollars closed at 2.27 per cent and 1.94 per cent respectively.

Money market

Sentiment: Bearish

Thin trading marred sentiment in the government securities market.

Prices of short-term gilts fell by 30 paise, while thise of medium-term securities slid by 40-50 paise.

The yield on the benchmark 7.38 percent 2015 paper closed higher at 7.26 per cent.

Call money rates went up to close at 6.5 per cent as reporting Friday drew near.

Foreign banks rushed to borrow from the interbank and repo markets and also from the RBI. Around Rs 14,000 crore was drawn from the RBI.