Re ends higher at 46.30/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the 46.27-46.32 band against the dollar

Sentiment: Bullish

Supported by foreign exchange inflows, the spot rupee closed higher at 46.29-46.30 after opening at 46.36-46.38 against the dollar

With apprehensions of a Fed rate hike, the premiums on the six month and one year forward dollars closed at 1.18 per cent and 1.26 per cent, respectively

Money market

Sentiment: Dull

Cautiousness prevailed among traders on the eve of the open market committee meeting of the Federal Reserve

The prices remained flat with rangebound movement seen in one or two papers

The yield on the ten-year paper closed at 8.13 per cent

Call rates ruled around 5.8-5.9 per cent with the RBI absorbing around Rs 42,000 crore from the system

The market took comfort from the fact that GDP and price data released by the Federal Reserve prior to the meeting has been in the line with the market expectations