Money

Sentiment : Cautious

Prices of government securities of medium tenor fell by 30-35 paise as news of the US undertaking strikes against Iraq gripped the market.

Gilts with short and long-term maturities did not react much.

Yield on the benchmark 10-year paper hardened by about 4 basis points to touch last Saturday's auction level of 7.18 per cent.

The five-year benchmark corporate bond was dealt at 7.39 percent, up from the previous day's 7.35.

Call money was comfortable around the repo rate of 5.75 per cent

Liquidity was comfortable.

Outlook: The government securities market is expected to see little activity and prices are expected to be rangebound. Call money will be comfortable.

Forex

Sentiment : Bearish

The rupee fell by around 10 paise today on fears of US strikes against Iraq. It ended at 48.5900/5950 per dollar compared with 48.4825/4850 on Thursday.

It opened biddish at 48.49/50 and edged lower on dollar buying by importers, corporates and banks.

Demand for the greenbacks outstripped supply.

Premiums on the forward dollar fell by around four basis points as exporters cancelled forward contracts and importers hedged.

The forex market has gone long on dollars due to the weakening of the rupee.

Outlook: The rupee is expected to open higher on Monday. Further dollar-rupee movement will depend on the action taken by the US against Iraq. Forwards could edge higher.