Re ends lowest level in 2006 at 46.10/$

MARKETS REPORT

Outlook:
The rupee is expected to trade in a range of Rs 46.05-46.15 per dollar

Sentiment: Bearish

Rupee weakened on strong dollar demand from importers

Rupee closed at 46.10 per dollar, its lowest level in 2006, against 45.89 on Friday

Forward premiums eased by 5-10 basis points with the six-month forward premium at 0.68%

Money market

Sentiment: Bearish

Government bond market was weak on the expected fuel price hikes' impact on inflation

Prices of bonds fell by 10-30 paise across the maturity spectrum

The benchmark 10-year, 7.59% 2016 bond closed at 7.65% yield

Overnight call rates remained soft on easy liquidity. Call transactions were dealt at 5.50-5.60%

The benchmark yield is at a four year high. It has gained 35 basis points since April 19, the day after the RBI unveiled the 2006-07 annual policy