Spot Re firms up to 46.36/$

MARKETS REPORT

Forex market

Outlook
The rupee is expected to open between 46.32 and 46.42 against the greenback on Wednesday.

Sentiment: Bullish

• The rupee opened at 46.42/43 per dollar and ended higher at 46.35/36 on dollar inflows. It hit an intraday low of 46.49.
• Premiums on forward dollars ended higher. Annualised premiums on six-month and one-year dollars closed at 2.60 per cent and 2.33 per cent respectively.

Money market

Sentiment: Bearish

• Gilt prices fell across the board on fears of a hike in the repo rate.
• Prices of long-term gilts slid 70-80 paise, while those of long-term paper crashed by Re 1.
• The yield on the ten-year benchmark paper, 7.37 per cent 2104, closed at 6.52 per cent. It touched an intraday high of 6.65 per cent.
• Call rates ended at 4.20-4.30 per cent.
• The corporate bonds market was lacklustre, with the spread between 5-year AAA paper and the gilt of comparable maturity narrowed to 70 bps.