Re ends higher at 46.08/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 46.05-08 to a dollar.

Sentiment: Bullish

The spot rupee opened at 46.1150/ 1250 but went up to a high of 46.0650 tracking a strong yen before closing for the day at 46.07/08 to a dollar.

The annualised premiums for the six-month and one-year forwards closed at 1.21 per cent and 1.26 per cent, respectively.

Money market

Sentiment: Bullish

Public sector banks bought heavily as the market feels that the Fed may maintain status quo in its FOMC meeting on Wednesday.

The prices of government securities went up by 25-40 paise across maturities.

The yield on the ten-year paper closed at 7.73 per cent.

The interbank call rates fell to 6.50 per cent after opening at 6.75 per cent and touching a high of 7 per cent.

The RBI absorbed around Rs 5,000 crore from the market through reverse repo bids as against Rs 3,000 crore last week.