Spot Re drops to 46.4050/$

MARKETS REPORT

Forex market

Outlook
The rupee is expected to open between 46.37 and 46.42 against the greenback on Wednesday.

Sentiment: Bearish

• The rupee opened at 46.34 per dollar and ended lower at 46.39/40 on dollar purchases by public sector banks. It hit an intraday high of 46.28.
• Premiums on forward dollar slipped. Annualised premiums on six-month and one-year dollars closed at 2.44 per cent and 1.99 per cent respectively.

Money market

Sentiment: Bearish

• The government securities market remained subdued in morning trades but bounced back on reassuring statements on interest rates from the finance minister.
• Prices remained rangebound but fell across the board by 5-10 paise.
• The yield on the ten-year benchmark security, 7.37 per cent 2014, closed at 6.24 per cent.
• Call money rates continued to rule in the range of 4.20-4.30 per cent.
• The corporate bonds market remained lacklustre.