Rupee ends lower at 46.31/$

MARKETS REPORT

Forex market

Outlook
The rupee is expected to open between 46.30 and 46.33 against the dollar on Wednesday.

Sentiment: Dull

• The rupee opened at 46.29 per dollar and closed lower at 46.31.
• Premiums on forward dollars ended flat. Annualised premiums on six-month and one-year dollars closed at 2.64 per cent and 2.31 per cent respectively.

Money market

Sentiment: Bullish

• Government security prices inched up on cooling oil prices and on hopes that this week's inflation data would be benign.
• Prices of medium-term paper rose by a rupee, while those of long-term securities gained by 25 paise.
• The yield on the ten-year benchmark paper, 7.37 per cent 2104, closed lower at 6.25 per cent.
• Call money rates ended at 4.20-4.30 per cent.
• Subscriptions to one-day repo stood at Rs 17,900 crore.

The spread between the yields on five-year AAA-rated corporate paper and the gilt of comparable maturity shrunk to 65 basis points.