Rupee slips on dollar buying by foreign banks

MARKETS REPORT

Forex market

Outlook
The spot rupee is expected to open in the range of 45.10/15

Sentiment: Dull

• The spot rupee opened at 44.97 and went into a depreciating spree by moving all the way to close at 45.0750/08 to a dollar on the back of dollar buying by foreign banks.
• Forward dollars inched owing to inter-bank sell-buy anticipating importer demand. Six-month and one-year forwards closed at 0.42 per cent and 0.41 per cent respectively.

Money market

Sentiment: Bearish

• Bond prices fell across the board on apprehension of a rate hike by Bank of England and cautiousness over a 50 basis points rate hike in the US as dollar has been steadily gaining across currencies.
• Prices in the long end of the maturity fell by 70-80 paise, while in the medium term, it slipped by 20-30 paise.
• The 10-year benchmark 7.37 per cent 2014 closed at 5.33 per cent.
• Call rates were around 4.20-30 per cent