Gilts rally on low inflation figure, Re slips on RBI move

The rupee is expected to open between 43.70 and 43.80 per dollar on Monday.

Money market

Sentiment: Bullish

• Headline inflation at 4.3 per cent acted as a major trigger in the government securities market.
• Prices of the long- and medium-term papers went up by 35-40 paise.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed at 5.11 per cent.
• Call money rates ended at 4.5 per cent on the back of demand from banks to meet CRR.
• Subscriptions at the repo window stood at Rs 50,700 crore.

Forex market

Sentiment: Bullish

• The rupee touched a new high of 43.30 in intraday trades. It, however, closed lower for the day at 45.7350/7450.
• Forward premiums slipped on exporter bookings. Annualised premiums on three-month and six-month dollars closed at one per cent and 0.7 per cent rspectively.