Re gains strength, ends at 45.74/$

MARKETS REPORT

Forex market

Outlook: The spot rupee is likely to open in the 45.70 range against the dollar on Thursday.

Sentiment: Bullish

• The spot rupee rose to 45.74/74 per dollar against the opening level of 45.93 and the previous close of 46.08 on account of adequate dollar supplies in the market
• Premiums on the six-month and 12-month forwards closed at 0.79 per cent and 0.67 per cent, respectively

Money market

Sentiment: Bullish

• Prices of government securities rose by 20-30 paise amid soft call rates
• Yield on the nine-year government paper fell to 6.99 per cent
• Call rates fell to 5.60 per cent due to some recovery in cash-tight situation
• The RBI absorbed Rs 550 crore through its morning reverse repo auction at 5.25 per cent
• It mopped up Rs 485 crore at 5.25 per cent under second liquidity adjustment