Money

Sentiment : Bullish

Yields on gilts spun south after comments by the minister of state for finance that lower interest rates were needed to provide cost-effective credit.

Trading was restricted to the medium tenor gilts, which went up by 15-30 paise.

The Reserve Bank of India lowered the cut-off price at its weekly auction of 91-day treasury bills to Rs 98.59 (yield: 5.7364 per cent) from Rs 98.60 (5.6951 per cent) at the previous auction.

Call money was comfortable in the 5.65-5.75 per cent range.

Outlook for Thursday: Gilts could go up by 10 to 15 paise tomorrow. Call money will rule easy in the 5.65-5.75 per cent band.

Forex

Sentiment : Bullish on the rupee

The rupee strengthened to 48.4475/4500 per dollar compared with the previous close of 48.4950/5000.

There was all-round dollar selling as fears of a US-Iraq war receded temporarily.

The inter-bank players went short on dollars to take advantage of the 1.5 paise swap differential.

Greenback supplies were mainly through non-resident remittances and foreign institutional investor investments. But demand was slack.

Near forwards edged up due to importer covering.

Outlook for tomorrow: The rupee is likely to open weak but strengthen during the course of the day and will trade in the 48.43-48.48 range. Forward premiums will track spot dollar.