Re ends lower at 45.19/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the 45.14-45.20 band against the dollar

Sentiment: Bearish

Heavy dollar demand from banks led the spot rupee to close at a low of 45.19 after opening at 44.97 against the dollar

The annualised premiums for the six-month and one-year forward dollars closed at 1.86 per cent and 1.76 per cent, respectively

Money market

Sentiment: Bullish

Heavy buying demand for long-term papers pushed up prices in the government securities market

The prices of long-term papers went up by 40-50 paise whereas the short- and medium-term prices remained flat

The yield on the ten-year paper closed at 7.56 per cent

The call rates remained tighter at seven per cent with the RBI absorbing around Rs 4,300 crore

The demand for the long-term papers surged on anticipation of a long-term paper being floated in the forthcoming government securities auction