Spot rupee ends at 46.38/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is expected to open in the range of 46.34-40 to a dollar.

Sentiment: Bearish

The spot rupee opened and closed around 46.36/38 but reached an intraday high of 46.28 to a dollar.

The premium for six-month and one-year forward dollars closed at 1.14 per cent and 1.23 per cent respectively.

Money market

Sentiment: Bullish

Following the government's statement on advancing of the July borrowing programme, market sentiment turned bullish.

Prices of government securities firmed up by 8-10 paise on buying demand from banks and primary dealers.

The yield on the 10-year paper closed at 8.12 per cent.

Call rates ruled around 5.85/86 per cent with the RBI absorbing around Rs 39,000 crore.

Corporate bond market witnessed brisk trading in short term instruments such as CDs and CPs.