Re ends higher at 46.34/$

MARKETS REPORT

Forex market

Outlook
Dealers expect the rupee to open at 46.23-25 levels on Thursday.

Sentiment: Bullish

The rupee opened at 46.17/19 levels, but sharply appreciated to 46.08 per dollar on account of inward remittances to foreign banks. It ended the day at 46.23/34 levels.

Forwards edged up on account of import booking and export cancellations. The six-month premium ended at 0.87 per cent (0.84 per cent), while the annualised premium closed at 0.68 per cent (0.65 per cent).

Money market

Sentiment: Bearish

The 7.37 per cent 2014 stock fell by 3-4 paise, closing the day at 6.9902 with the price at Rs 102.36.

Although the market saw some positive signals in morning trades, it ended at the same levels as on Tuesday.

Traders said bonds were also helped by RBI governor YV Reddy's comments on Tuesday that the introduction of a second daily auction of reverse repurchase and repurchase agreements was helping it manage liquidity better.

The call market witnessed comfortable liquidity positions, with deals occurring at 5.35 levels.

The RBI mopped up bids worth 17,500 crore in the two LAF windows.