Re slumps to 46.37/$ at close

MARKETS REPORT

Forex market

Outlook
The rupee is expected to open between 46.33 and 46.38 against the greenback on Tuesday.

Sentiment: Dull

The rupee opened at 46.32/33 per dollar ended lower at 46.3650/37 amid more demand for and tight supply of greenbacks.

Premiums on forward dollars were ranged. Annualised premiums on six-month and one-year closed at 2.45 per cent and 2.8 per cent respectively.

Money market

Sentiment: Bullish

Government security prices took a battering after the Reserve Bank of India revised its outlook for inflation upwards in its annual report.

Prices of long-term gilts slipped by Re 1, while those of medium-term securities slid by 60-70 paise.

Yield on the ten-year benchmark, 7.37 per cent 2014, shot up 6.16 per cent, compared with 6.05 per cent previously.

Call money rates ended at 4.30-4.40 per cent.

The spread between the yield on five-year AAA-rated corporate bond and that on gilt of corresponding maturity narrowed because of rising gilt yields.