Re ends higher at 45.97/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is likely to open in the range of 46.05-10 to a dollar.

Sentiment: Bullish

The spot rupee opened at 46.06/08, went up to a high of 46.10 before closing at a low of 45.96/97.

The annualised premium on six-month and one-year forward dollars closed at 1.18 per cent and 1.25 per cent respectively.

Money market

Sentiment: Bearish

Crude prices below $62 per barrel and heavy buying demand by banks led to government securities moving up by 80-90 paise.

The yield on the 10-year paper closed at 7.6125 per cent.

The gilts market clocked a volume of around Rs 11,000 crore.

Call rates, however ruled higher around 6.45 per cent with the RBI absorbing around Rs 9000 crore from the market.

The tightness in the liquidity led to firmness in the cut-off yield for 91-day and 182-day t-bills.

The cut-off yield for 91 day t-bill was 6.52 per cent, four basis points higher than 6.48 per cent last week and 6.78 per cent for 182-day t- bill against 6.73 per cent earlier.