Re jumps to 45.37/$ at close

MARKETS REPORT

Forex market

Outlook
The rupee is expected to open between 45.34 and 45.38 against the greenback on Wednesday.

Sentiment: Bullish

The rupee opened at 45. 52/54 per dollar and ended higher at 45.36/37 on thickening foreign exchange inflows.

Premiums on forward dollars closed marginally lower. Annualised premiums on six-month and one-year dollars ended at 2.75 per cent and 2.30 per cent respectively.

Money market

Sentiment: Bearish

Government security prices extended their losses on concerns over liquidity in the system.

The RBI kept the sale of state government loans open for the second day.

The markets were apprehensive of the forthcoming government borrowings.

Yield on the benchmark 7.38 per cent 2015 gilt closed higher at 6.94 per cent.

Call money rates rose to 5.25-5.5 per cent.

Repo subscription stood at Rs 510 crore.