Re ends higher at 46.61/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 46-58-64 to a dollar.

Sentiment: Bullish

Weak economic data from the United States led to the dollar weakening against major currencies and also the rupee. The spot rupee opened at 46.68/67 but closed at a high of 46.6050 to a dollar.

The annualised premium on six-month and one-year forward dollars closed at 1.04 per cent and 1.14 per cent.

Money market

Sentiment: Bullish

Prices of government securities moved up 20-30 paise but the action was restricted to few papers such as the 9.39 per cent 2011 and 9.59 per cent 2016.

The auction of 7.55 per cent 2010 was oversubscribed as the RBI received bids worth Rs 9000 crore against notified amount of Rs 4,000 crore.

The auction was cleared at a cut-off yield of 7.69 per cent.

Call rates ruled around 6.05/10 per cent with the RBI absorbing around Rs 44,000 crore from the system.

The yield on the 10-year paper closed at 8.20 per cent.