Re ends higher at 46.51/$

MARKETS REPORT

Outlook:
The spot rupee is expected to open in the range of 46. 48-52 to a dollar.

Sentiment: Bullish

The spot rupee opened at 46.56 to a dollar but gained to close at 46.51 tracking a strong yen.

The annualised premia on the six month and one year forward dollars closed at 1.40 per cent and 1.35 per cent respectively.

Money market

Sentiment: Dull

The prices of government securities remained rangebound in a narrow band of 5-10 paise.

The yield on the ten year paper closed at 7.95 per cent.

Liquidity improved as the RBI absorbed around Rs 39,000 crore from the market as against Rs 24,000 crore last weekend.

The call rates ruled in the range of 6.05-6.10 per cent.

The market is awaiting the announcement of the next government borrowing programme which is slated in the first week, of September.