Re ends lower at 46.60/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 46.57-62 to a dollar.

Sentiment: Bullish

The spot rupee depreciated after opening at 46.42 following high crude prices at $77 a barrel and closed the day at 46.59/60 to a dollar.

The annualised premium for six-month and one-year forward dollars closed at 1.05 per cent and 1.14 per cent.

Money market

Sentiment: Bullish

Gilt prices moved up tracking the weak US data on Friday and thus perceiving less chances of rate revision in the next FOMC meeting.

The upward price movement of 15-20 paise was, however, in liquid papers.

The yield on the 10-year paper closed at 8.25 per cent.

Call rates ruled around 6.05/6.10 per cent with the RBI absorbing around Rs 44,000 crore from the system.

When-issued market witnessed volumes of around Rs 25 crore for 9.39 per cent 2011 paper to be auctioned on August 8.