Re slips a bit to 43.91/$

MARKETS REPORT

Outlook:
The rupee looks edgy ahead of Tuesday's US Federal Reserve meet

Sentiment: Ranged

• The rupee ended a tad weaker at 43.90/91 against the dollar
• The six-month forward premium closed at 0.67 per cent

Money market

Sentiment: Mixed

• Call rates ruled around 5-5.10 per cent
• There was adequate liquidity in the market
• The benchmark yield almost nudged the seven per cent mark
• Government bonds looked weak as the borrowing programme will be higher than the budgeted figures
• Advance tax outflows worth Rs 2000-3000 crore might squeeze liquidity in the banking system.
• The yield on the benchmark 7.37 per cent 2014 gilt was down by one basis points to 6.94 per cent from its previous close of 6.95 per cent.
• Sentiments in the bond market are likely to remain cautious ahead of government borrowing plans