Re ends at 2-month high of 43.49/$

MARKETS REPORT

Forex market

OUTLOOK
The spot rupee is expected to open in the range of 43. 47/50 to a dollar on Thursday.

Sentiment: Bullish

Buzz of yuan revaluation led to fresh appreciation with spot rupee opening at 43.54/55 and closing at 2-month high of 43.48/49 to a dollar.

Forward dollars came off with the six-month and one-year premiums closing at 1.54 per cent and 1.36 per cent, respectively.

Money market

Sentiment: Bullish

Even as the US Fed hiked its base rate to 3 per cent, subdued oil prices, auction outcome on Tuesday and soft GDP data in the US led to a bullish sentiment.

Prices of long-term papers moved up by 50 paise, whereas short and medium term papers witnessed a price hike of 15-30 paise.

The yield on the 10-year 7.38 per cent 2015 paper closed at 7.22 per cent, while the benchmark 12-year 8.07 per cent 2017 paper closed at 7.45 per cent.

Call rates ruled comfortable at 4.90/5 per cent even as the reverse repo bids stood at Rs 27,000 crore.