Rupee ends off highs at 46.26/$

MARKETS REPORT

Forex market

Outlook
The spot rupee is expected to open in the range of 46.24/28 to a dollar.

Sentiment: Bullish

• The spot rupee opened at 46.26/27 but moved up to 46.23/24 on the back of dollar selling by exporters and inter-bank covering. Corporate demand for dollars, however, saw the rupee close at 46.2650/2750.
  
  
• Forwards tracked the spot rupee with the six-month and one-year premiums closing at 2.73 per cent and 2.36 per cent respectively.

Money market

Sentiment: Bullish

• The steel price cuts and the upgrade by global rating agency Standard & Poors resulted in the prices of government securities rallying on Monday.
• The prices in medium-term papers went up by Rs 1.50, while in the long tenure segment, it has moved up by a rupee.
• The 10-year benchmark 7.37 per cent 2014 closed at 6.31 per cent against a close of 6.5 per cent last week.
• Call money rates have been comfortable at 4.20-30 per cent.