Rupee ends lower at 45.50/$

MARKETS REPORTS

Outlook:The rupee is expected to open between 45.47 and 45.50 against the greenback on Wednesday.

Sentiment: Volatile

• The rupee opened at 45.40/41 per dollar and closed lower at 45.4950/5050 on dollar demand from banks and corporates. It hit an intraday high of 45.38.
• Premiums on forward dollar inched up. Annualised premiums on six-month and one-year dollars closed at 2.74 per cent and 2.26 per cent respectively.

Money market

Sentiment: Bearish

• Government security prices barely budged on apprehensions over the state loan and government security auctions.
• Prices of gilts of all maturities ended flat.
• n Yield on the benchmark 7.37 per cent 2014 gilt closed at 6.95 per cent.
• Call money rates ended higher at 5 per cent.
• Repo subscriptions stood at Rs 1,700 crore.
• The spread between the yield on the 5-year AAA paper and the gilt of comparable maturity has narrowed to 40 basis points.