Re ends marginally higher at 46.13/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 46.10-13 to a dollar on Monday.

Sentiment: Bearish

The spot rupee opened around 46.11/ 12 and strengthened to 46.0750/0850 on FII inflows. However, dollar demand by oil companies led to a close of 46.1150/1250 after hitting lows of 46.14/15.

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

Money market

Sentiment: Bearish

Backed by good CPI data in the US, market sentiment turned bearish with apprehension that Federal Reserve may hike rates in the FOMC next week.

The prices of government securities fell by 20-25 paise following a sale of securities by the banks.

The yield on the ten-year paper closed at 7.83 per cent.

Call rates ruled around 6.05-6.10 per cent.

Liquidity is perceived to be under pressure since the RBI absorbed around Rs 23,000 crore from the market as against Rs 37,000 crore on Thursday.

The RBI infused around Rs 275 crore through three-day repo bids.