Re ends higher at 45.28/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 45. 23-27 to a dollar.

Sentiment: Bullish

A strong yen pushed the rupee higher against the dollar at 45.39/40 against its Monday's closing of 45.43/44.

The rupee further appreciated to close at a high of 45. 27/28 to a dollar.

Factoring a rate hike in the forthcoming monetary policy, the forward premium on six-month and one-year forward dollars closed at 1.72 per cent and 1.61 per cent, respectively.

Money market

Sentiment: Bearish

Higher inflation and strain on liquidity have resulted in the market to factor a rate hike in the forthcoming monetary policy.

Prices of securities fell by 4-5 paise across maturities.

The yield on the 10-year paper closed at a 7.67 per cent.

The Reserve Bank of India (RBI) absorbed around Rs 3925 crore from the market even as the call rates hovered around 6.70/80 per cent .

Inflation has been ruling high owing to rising prices of essential commodities.