Rupee drops on oil price concerns

MARKETS REPORT

Forex market

Outlook: The rupee is expected to slip further to 46.00-46.05 per dollar on Tuesday.

Sentiment: Bearish

• The rupee fell to 45.9500/9650 per dollar on rising global oil prices, but dollar sales by state-owned banks on behalf of the RBI prevented a steep fall.
• Premiums on dollar forwards crept up. Annualised premium on one-year dollar ended at 1.60 per cent, up from Friday's 1.53 per cent.

Money market

Sentiment: Bearish

• Prices of government security prices slid as rising crude oil prices globally stoked worries over domestic inflation and interest rates.
• Prices fell by 15-65 paise across the board.
• Yield on the benchmark 10-year paper, 7.37 per cent 2014, shot up by six basis points to 6.12 per cent.
• Call money rates ended flat at 4.40-4.60 per cent.