Spot rupee ends at 46.92/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 46. 89-93 to a dollar.

Sentiment: Bearish

The spot rupee opened at 46.83/84, lost to 46.97/98 before recovering to close at 46.91/92 to a dollar.

The annualised premium on six-month and one-year forward dollars closed at 0.72 per cent and 0.96 per cent, respectively.

Money market

Sentiment: Bullish

Prices of government securities moved up by 10-15 paise as the market was divided on a short-term rate hike by the RBI in its policy review on Tuesday.

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

Call rate was comfortable at 5.8/5.9 per cent, while the RBI absorbed around Rs 37,000 crore.

Corporate bond market witnessed buying demand from banks and provident funds.

The macroeconomic review highlighted mineral oil and primary article prices as factors contributing to higher inflation as much as the international crude prices.