Re plunges on short covering

MARKETS REPORT

Forex market

Outlook : The rupee is expected to trade weak in a range of 44.01-44.10 against the greenback on Thursday.

Sentiment: Bearish

• The rupee ended lower by 17 paise at 44.06 per dollar due to greenback's rebound overseas and short covering by banks.
• Discount on forward dollars widened. Annualised discount on six-month dollar went up to 0.54 per cent from 0.32 per cent on Tuesday.

Money market

Sentiment: Bearish

• Prices of government securities ended lower after Federal Reserve Chairman Alan Greenspan signalled a rise in US interest rates was on the horizon.
• Yield on the benchmark 10-year gilt ended higher at 5.07 per cent, compared with Tuesday's close of 5.06 per cent.
• The RBI conducted an on-tap sale of the 5.60 per cent 2014 gilt of 28 state governments. The sale is expected to raise Rs 6,500 crore.
• Call money rates ended higher at 4.25-4.50 per cent compared with Tuesday's 4.00/4.25.
• Subscriptions to the seven-day repo stood at Rs 10,215 crore.