Spot rupee ends at 45.93/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 45.90-95 to a dollar on Thursday.

Sentiment: Bullish

The spot rupee opened at 45.89/90 but month-end dollar demand by importers made it depreciate to a low of 45.93 before closing for the day at 45.92/93 against the greenback.

The annualised premium for six-month and one-year dollars closed at 1.28 per cent and 1.31 per cent respectively.

Money market

Sentiment: Bearish

Liquidity concerns marred the market sentiment even as there was buying in papers of long-term maturity.

While primary dealers were seen selling papers in the medium maturity, while banks bought in the long-end expecting a fall in yields.

The yield on the 10-year paper closed at 7.5950 per cent.

Even as the RBI absorbed around Rs 19,955 crore from the market, the call rates ruled higher in the range of 6.50-60 per cent.

The cutoff yield on the 91-day t-bill closed eight basis point higher at 6.60 per cent against 6.52 per cent last week owing to liquidity concerns.

The 364 day t-bill was auctioned at a cut-off two basis point lower than last week.