Re ends lower at 45.72/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 45.70-75 to a dollar.

Sentiment: Bearish

Since the revised non-farm payroll data was bullish on the dollar, the spot rupee opened lower at 45.68/69 against a close of 45.58/59 last week.

Importer demand further led the rupee lower to close at 45.72/73.

The annualised premia for six-month and one-year forward dollars closed at 1.34 per cent and 1.39 per cent respectively.

Money market

Sentiment: Bullish

The government securities market witnessed a correction as banks were engaged in the sale of securities to prepare for the auction.

Prices of government securities in the short- and medium-term papers fell by 10-20 paise, while that of long-term papers was quoted flat.

The yield on the ten-year paper closed at 7.64 per cent.

Call rates ruled around 6.40-50 per cent even as the RBI absorbed around Rs 29,000 crore through reverse repo.

The RBI announced the auction of securities "" 7.59 per cent government stock 2016 for Rs 6,000 crore and 8.33 per cent government stock 2036 for Rs 3,000 crore.