Re ends higher at 46.56/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 46.53-58 to a dollar.

Sentiment: Bullish

The spot rupee opened higher at 46.56/57 against a close of 46.67 to a dollar last week. It rose higher to 46.46/47 but fell to close of 46.55/56 owing to high oil demand.

The annualised premium on six-month and one-year forward dollars closed at 1.07 per cent and 1.14 per cent respectively.

Money market

Sentiment: Dull

Auction announcement kept government securities lacklustre with prices remaining flat.

The yield on the 10-year paper closed at 8.23 per cent.

Call rates ruled around 6.05/6.10 per cent with the RBI absorbing around Rs 40,000 crore from the system.

Corporate bond market witnessed active buying from provident funds.

The RBI reissued 9.39 per cent 2011 and 7.59 per cent 2016 to be auctioned on August 8.