Re ends lower at 45.37/$

MARKETS REPORT

Outlook:
The spot rupee, after two days of holidays, is expected to open at 45. 32-36 to a dollar.

Sentiment: Bearish

Unwinding of dollar positions overseas led to a weak rupee, which touched an intraday low of 45.42/43 after opening at 45.32/33. The spot rupee closed at 45.37/38 to a dollar.

The annualised premium for six-month and one-year forward dollars closed at 1.65 per cent and 1.45 per cent, respectively.

Money market

Sentiment: Lacklustre

The government securities market witnessed moderate trading since players expect the US Fed no to hike rates at its meeting on Tuesday.

The prices of government securities fell by 10-15 paise.

Call rates eased from highs of 7.25 per cent to 6.90 per cent.

The yield on the 10-year paper closed at 7.66 per cent.

There is a net liquidity infusion of around Rs 700 crore by the RBI into the market through open market operations.