Rangebound Re close at 44.91/$

MARKETS REPORT

Forex market

Outlook:
The rupee is expected to trade to trade in the range of 44.87 to 44.92.

Sentiment: Dull

The spot rupee remained rangebound by opening and closing at 44.89/91 after reaching a low of 44.97 to a dollar.

The premium on six-month and one-year forward dollars closed at 1.36 per cent and 1.34 per cent respectively.

Money market

Sentiment: Volatile

The prices of government securities remained rangebound during the day but fell on a knee-jerk reaction to the auction results.

The yield on the ten-year 7.59 per cent 2016 gilt closed at 7.53 per cent.

Post-auction, prices fell by 10-15 paise across maturities.

Call rates ruled around 5.5 per cent with the RBI absorbing around Rs 72,000 crore from the market.

Corporate bond market remained lacklustre.