Re ends higher at 46.44/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 46.40-45 to a dollar.

Sentiment: Bullish

The spot rupee opened at 46.49/50 but closed at a high of 46.43/44 versus the dollar backed by the weak US inflation data and soft oil prices.

The annualised premium for six-month and one-year forward dollars closed at 1.35 per cent and 1.32 per cent respectively.

Money market

Sentiment: Bullish

Prices of government securities moved up 20-30 paise across maturities.

The yield on the 10-year paper closed at 8.02 per cent.

The trigger for bullishness was the weak inflation data released in the United States.

Call rates continued to remain high at 6.10-6.15 per cent.

Liquidity in the market , however improved with the the RBI absorbing around Rs 34,000 crore through reverse repo.