Re slumps to 46.34/$, at 16-month low

MARKETS REPORT

Forex market

Outlook: The spot rupee is likely to open at the 46.35 levels against the dollar

Sentiment: Bearish

• The spot rupee fell to 16 month low today at 46.33/34 a dollar as against Friday's close of 46.18
• The six-month forward premium closed at 0.70 per cent, while the 12-month premium closed at 0.59 per cent

Money market

Sentiment: Bullish

• Prices of short-tenure gilts moved in a narrow range of 3-5 paise, while those of long-tenure ones moved in a range of 10-15 paise ahead of the auction announcement
• The yield on nine-year government stock stood at 6.98 per cent
• RBI will auction a 8.07 per cent 2017 paper and another 7.40 per cent 2035 paper today
• Call rates closed straddled around reverse repo rate at 5.35/5.40 per cent amid adequate liquidity
• RBI accepted 19 bids aggregating Rs 15,320 crore under the liquidity adjustment facility