Re weaker at 44.73/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 44.70/75 to a dollar

Sentiment: Bearish

The spot rupee opened at 44.69/70 and backed by oil importer demand closed at a 44.73 after reaching intraday lows of 44.77/78 to a dollar.

The annualised premium for six-month and one-year forward dollars closed at 2.20 per cent and 2.02 per cent, respectively.

Money market

Sentiment: Bearish

The bullish GDP data and higher inflation forecast pulled down market sentiment.

Prices of government securities across maturities fell by 30-40 paise.

The yield on 10-year benchmark closed at 7.42 per cent against a close of 7.40 per cent on Wednesday.

Call rates ruled around 6.10/6.25 per cent with the RBI absorbing around Rs 18,000 crore from the market.

While the GDP grew by 9.1 per cent , government expected the inflation to cross 6 per cent and market perceived a strong signal for rate hike.