Re ends bearish

MARKETS REPORT

Forex market

Outlook
The rupee is expected to open between 46.38/43 against the greenback on Tuesday.

Sentiment: Bearish

• The rupee opened at 46.23/24 per dollar and ended lower at 46.39/41 on demand from state-run banks and corporates.
• Premiums on forward dollars inched up. Annualised premiums on six-month and one-year dollar closed at 2.53 per cent and 2.16 per cent, respectively.

Money market

Sentiment: Bearish

• Government security prices crashed on rising domestic inflation and on fears that the US Federal Reserve may go for a 25 basis points rise in its key funds rate.
• Prices of long-term paper fell by Rs 2.00-2.50 and those of medium-end gilts slid by Re 1.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed higher at 6.50 per cent.
• Call money rates ended at 4.20-50 per cent.