Re nosedives to 44.85/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 44.82-44.87 against the dollar.

Sentiment: Bearish

Dollar strength overseas led to fall in major cross currencies and so for the spot rupee

The spot rupee opened at a low of 44.82 as against a last weekend closing of 44.72-44.73 against the dollar. Even as it reached an intra-day high of 44.76, the spot rupee finally closed at a low of 44.85 against the dollar

The annualised premiums for the six-month and one-year forward dollars shot up to close at 2.62 per cent and 2.40 per cent as against 2.14 per cent and 2.05 per cent on Friday

Money market

Sentiment: Bearish

The CRR hike marred the market sentiment leading to heavy selling by banks and primary dealers

Prices of securities across maturities up to 10-year fell by more than Re 1

Yield on the ten-year benchmark closed at 7.53 per cent as against a closing of 7.39 per cent last week

Anxiety over liquidity led to call rates zooming to 6.85-7.15 per cent

The RBI absorbed around Rs 8,500 crore from the market since the banks prepared for the reserve requirements in the coming fortnight

The long-end of the yield curve did not witness much activity