Re ends lower at 45.85/$

MARKETS REPORT

Forex market

Outlook
The spot rupee is expected to open in the range of 45.85/87 to a dollar on Wednesday.

Sentiment: Bearish

The spot rupee opened at 45.79/81 to a dollar and closed at 45.84/85 taking cues from dollar's movement in the overseas market.

The six-month forward premium closed at 0.52 per cent, while the 12-month premium closed at 0.43 per cent.

Money market

Sentiment: Bullish

Prices of government securities rose in a range of 5-10 paise following the auction announcement on Monday.

The actively traded 7.37 per cent 2014 gilt closed at 6.965 per cent. The 10-year bond was illiquid today.

The government would raise Rs 5,000 crore from the auction of 8.35 per cent 2022 stock on November 24.

LIC is expected to be the main bidder for the auction of this long tenure paper.

Call rates fell to 5.50/5.60 per cent with reverse repo bids, aggregating Rs 7,075 crore.

There are signs of an ease in cash-crunch situation as the government has stepped up its spending.