Re ends higher at 46.17/$

MARKETS REPORT

Forex market

Outlook:
The rupee is seen opening in the 46.10-46.20 range.

Sentiment: Bullish

The rupee opened at 46.2800 to a dollar, reflecting the weakening of the yen, but closed at 46.1650 to a dollar

Forward premiums fell with surge in the rupee and comfortable liquidity situation. The six-month and one-month premiums closed at 1.23 per cent and 1.08 per cent, respectively.

Money market

Sentiment: Bearish

Bond yields ended higher with investors continuing to sell government securities ahead of September 8 auction

The yield on the ten-year paper closed at 7.78 per cent against Tuesday's close of 7.75 per cent.

Trading volumes in bonds rose to nearly Rs 3,000 crore, from around Rs 1,100 crore on Tuesday

Call rates remained steady at around 6-6.10 per cent with the RBI absorbing around Rs 40,000 crore from the market, for the third consecutive day