Rupee drops on increased corporate demand

MARKETS REPORT

Forex market

Outlook
The rupee is expected to open between 45.09 and 45.13 against the greenback on Wednesday.

Sentiment: Bearish

The rupee opened at 45.96/97 per dollar and ended lower at 46.11/12 on month end demand for dollars from corporates.

Premiums on forward dollars closed higher. Annualised premiums on with six-month and one-year closing at 2.27 per cent and 1.89 per cent respectively.

Money market

Sentiment: Bearish

Government security prices slid across the board on rising global crude oil prices and thin buying demand from nationalised banks.

Prices of long-term securities went down by Re 1, while those of short- and medium-term fell by 40-50 paise.

Yield on the ten-year benchmark paper, 7.37 per cent 2014, shot up to 6.20 per cent from 6.12 per cent on Monday.

Call money rates closed higher at 4.60 per cent.