Re ends higher at 45.26/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 45.23-27 to a dollar.

Sentiment: Bullish

The spot rupee opened at 45.30 but closed higher at 45.26 on the back of dollar sales by exporters.

The forward premium for six-month and one-year dollars closed at 1.61 per cent and 1.52 per cent, respectively.

Money market

Sentiment: Bullish

With the US yields coming down, there was a rally in the government securities market.

Prices of government securities moved up by 15-20 paise.

Call rates opened higher above 7 per cent but softened later with the RBI absorbing around Rs 16,325 crore from the market in the second tranche of market operations.

The yield on the 10-year benchmark paper closed at 7.63 per cent.

The RBI announced a cutoff yield of 6.64 per cent for 91-day t-bill and 6.99 per cent for 364 day t-bill, which is eight basis point higher than last cut-off yield of 6.91 per cent.