Re fell further to close at 46.36/$

MARKETS REPORT

Forex market

Outlook:
The rupee is likely to trade in a wide range of 46.30-46.45 against the dollar

Sentiment: Bearish

The rupee fell further to close at 46.36 per dollar from Rs 46.30 on Tuesday.

The rupee was at a three-year low of 46.57 in the afternoon trades

The six-month forward dollar premium further eased to 0.60% from 0.66% on Tuesday

Money market

Sentiment: Bearish

Government bonds were range-bound as stronger-than-expected GDP growth reinforced views that RBI will hike rates in July

The yield on the benchmark 7.59%, 2016 bond closed flat at 7.65%

The RBI fixed higher cut-off yields at the auctions of Rs 1,500 crore 182-day T-bills and Rs 2,000 crore 91-day T-bills

The cut-off yield on the 91-day T-bill was 5.74%, up from 5.70% in the previous auction

The cut-off yield on the 182-day T-bill was 6.18%, up from 6.10% in the previous auction