Re ends higher 45.87/$

MARKETS REPORT

Outlook:
The spot rupee is likely to open in the range of 45.80-95 to a dollar on Friday.

Sentiment: Bullish

The spot rupee strengthened further today to close at 45.86/87, after opening at 45.90/92, on the back of soft oil prices, steady Fed rates, and robust capital inflows.

Annualised premium on six-month and one-year forward dollars closed at 1.22 per cent and 1.25 per cent, respectively.

Money market

Sentiment: Bullish

Government securities fell by 40-50 paise with bouts of profit taking by traders who built positions anticipating no change in the Fed rate.

The yield on the 10-year benchmark security closed at 7.68 per cent, up from the previous close of 7.61 per cent, after RBI Governor Y V Reddy said concerns on inflation front still remained.

Call rates closed at 6.30-6.40 per cent, marginally lower than yesterday's level.

RBI absorbed around Rs 13,000 crore from the market through its reverse repo operations.