Money

Sentiment : Cautious

The inter-bank call money rates hovered around the repo rate of 5.75 per cent.

The Reserve Bank of India (RBI) received seven bids of Rs 14,280 crore at Tuesday's repo auction, all of which were accepted partially for Rs 9,996 crore.

Gilts remained range-bound before the US Federal Open Market Committee meeting.

Trading volume in gilts was thin and most of the action was in the medium and short-tenor issues.

Outlook: The movement in gilts will depend on US Fed's decision. Call money rates will continue to remain soft and will hover around the repo rate.

Forex

Sentiment : Positive

The rupee pierced the 48.60/$ barrier and rose to a six-month, intra-day high of 48.5850/59. Chartists see the next crucial level at 48.55.

There were greenback inflows through corporates, exporters and through some ECBs.

There was demand for dollars from importers but the supplies more than matched the orders.

State-owned banks were seen mopping up dollars on behalf of the Reserve Bank of India (RBI) late in the day due to which the rupee ended at 48.5950/6025.

Forward premiums were nearly flat as participants awaited the US Federal Open Market Committee's decision on rate cut.

Outlook: The rupee will move in the 48.58-48.62 band per dollar. It will open lower at around 48.60/61 due to the weekend differential. Forward premiums will rise if the FOMC cuts the discount rate.