Re end higher at 46.32/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 46.30-35 to a dollar.

Sentiment: Bullish

Dollar weakness and strong business confidence data from Japan perked up the rupee that opened at 46.48 but went up to close at 46.32 to a dollar.

The six-month and one-month forward dollars closed at a premium of 1.33 per cent and 1.36 per cent, respectively.

Money market

Sentiment: Bullish

The government securities market rallied with yields across maturities moving up by 10-12 basis points.

The yield on the ten-year paper closed at 7.71 per cent against 7.87 per cent at the weekend.

Call rates ruled around 6.05-6.10 per cent with the RBI absorbing around Rs 40,000 crore from the market.

The prices of government securities moved up by almost Re 1 across maturities.

The government reissued 7.59 per cent 2016 and 7.50 per cent 2034 to be auctioned on September 8 to raise Rs 8,000 crore.