Re recovers to close at 46.36/$

MARKETS REPORT

Forex market

Sentiment: Bullish

The spot rupee opened at 46.44 but after reaching an intraday low of 46.50, following dollar sales by PSU banks on behalf of the RBI. The local currency recovered to close at 46.36 gainst the dollar.

Money market

Sentiment: Bearish

Prices of government securities remained rangebound within 5-6 paise

The yield on the ten-year paper closed at 8.35 per cent.

The call rates ruled at around 5.8/5.9 per cent while the RBI absorbed around Rs 40,000 crore from the system.

There was buying demand from banks and PFs at low prices.

The corporate bond market also witnessed buying demand from banks.

Oil prices above $ 77 per barrel played a spoilsport.