Rupee ends firm

MARKETS REPORT

Outlook
The rupee is expected to open between 46.33 and 46.40 against the greenback on Tuesday.

Sentiment: Bullish

The rupee opened at 46.42/45 per dollar and ended higher at 46.34/35. The dollar fell against most of the global peers after the US issued a warning of an impending Al Qaeda attack.

Premiums on forward dollars slipped. Annualised premiums on six-month and one-year dollars closed at 2.35 per cent and 1.87 per cent respectively.

Money market

Sentiment: Bearish

Government security prices tumbled on concerns about the impact of petrol and diesel prices hike on headline inflation data.

Prices of long-term paper fell by 70 paise, while those of medium-term gilts slipped 50-60 paise.

The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed higher at 6.23 per cent, compared with 6.17 per cent on Saturday.

Call money rates ended at 4.20-4.30 per cent.