Re ends higher at 46.14/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 46.08/ 13 to a dollar.

Sentiment: Bullish

The spot rupee opened higher at 46.09/10 as against a close of 46.18/19 on Wednesday, tracking weakness in the greenback. Dollar demand by oil companies forced it to close at a low of 46.13/14.

The annualised premiums on the six-month and one-year forwards closed at 1.32 per cent and 1.33 per cent, respectively.

Money market

Sentiment: Bearish

The market became jittery after banks offloaded gilts for remaining liquid to pay advance taxes.

Gilts prices fell by 30-35 paise across maturities.

The yield on the ten-year paper ended at 7.81 per cent after closing at a low of 7.74 per cent on Wednesday.

Even if the crude prices are ruling around $63-74 per barrel, markets feel that the liquidity may not remain comfortable.

Another factor that impacted the market was the perception that the US may not continue to hold rates lower.