Rupee ends at a 2-month high

MARKETS REPORT

Forex market

Outlook
The rupee is expected to open between 45.85 and 46.00 against the greenback on Wednesday.

Sentiment: Bullish

The rupee opened at 46.15/15 per dollar and gained 27 paise to end at a two-month high of 45.90/91.

Premiums on forward dollars crashed. Annualised premium on the six-month and one-day dollars slid to 1.28 per cent and 1.15 per cent from 1.72 per cent and 1.55 per cent respectively.

Money market

Sentiment: Bearish

Government securities prices trod a narrow range and ended flat on fears of looming interest rate rises.

Prices rose across the board by 30-50 paise in intraday trades.

Yield of the ten-year benchmark paper, 7.37 per cent 2014, ended at 6.10 per cent, up from the day's low of 6.05 per cent.

Call money rates ended higher at 4.35-4.50 per cent.

Outstanding liquidity in the system stood at Rs 27,870 crore.