Markets Report

Money market

Sentiment: Weak

• Government security prices slid across the board due to the rise in inflation rate to 5.75 per cent and the 10-year state government paper of Maharastra fetching abnormally high cut-off rate of 6 per cent.
• Prices of long-term securities fell by 25-30 paise, while those of medium-term papers dipped by 15-20 paise.
• The yield on the benchmark ten-year gilt ended at 5.11 per cent.
• Call money rates closed at 4.25 per cent.
• Repo subscriptions stood at Rs 27,000 cr.

Forex market

Sentiment: Strong

• The rupee opened at 45.43 per dollar following dollar weakness and went up to a day's high of 45.40. However, it ended flat at 45.4250 on banks' dollar buying.
• Forward dollars traded at premiums as the fear of cash dollar shortage waned. Premiums on six-month and one-year dollars ended at 0.1 per cent and 0.25 per cent.

Outlook

---

The rupee is expected to open in the range of 45.40-45.43 per dollar on Tuesday.