Spot Re drops to 46.37/$ at close

MARKETS REPORT

Forex market

Outlook
The rupee is expected to open between 46.34 and 46.40 against the greenback on Thursday.

Sentiment: Bearish

• The rupee opened at 46.29/30 per dollar and ended lower at 46.36/37 due to rising dollar globally and corporate's demand for greenbacks.
• Premiums on forward dollars eased due to falling gilt yields. Annualised premiums on six-month and one-year dollars closed at 2.48 per cent and 2.25 per cent respectively.

Money market

Sentiment: Bullish

• Government security prices got a boost from retreating global crude oil prices.
• Prices of long-term paper went up by Re 1, while those of medium-term securities gained by almost 80 paise.
• The yield on the 10-year benchmark paper came down to close at 6.20 per cent.
• Call money rates remained comfortable at 4.20-4.30 per cent.
• Buying demand in the corporate bonds market shot up as public sector banks, which have stayed away from the market till date, re-joined.