Re spurts to 46.22/$ at close

MARKETS REPORT

Forex market

Outlook
The rupee is expected to open between 46.20 and 46.25 against the greenback on Thursday.

Sentiment: Bearish

• The rupee opened at 46.30/32 per dollar and closed higher at 46.20/22 due to dollar sales by major public sector banks. It hit an intraday high of 46.18.
• Premiums on forward dollars shot up. Annualised premiums on six-month and one-year dollars closed at 2.85 per cent and 2.3 per cent respectively.

Money market

Sentiment: Bearish

• Government security prices fell on fears that the weekly headline inflation data, due for release on Friday, may show up another rise.
• Prices of medium- and long-term securities fell by 80-90 paise.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed higher at 6.65 per cent, compared with 6.5 per cent on Wednesday.
• Call rates went up to 5.23 per cent.
• The corporate bonds market continued to remain sluggish.