Re drops to 43.59/$, gilts move up

MARKETS REPORT

Outlook
The spot rupee is expected to open in the range of 43.56/60 to a dollar on Friday.

Sentiment: Dull

The spot rupee opened at 43.55/56 but closed at 43.58/59 to a dollar following acute shortage of cash dollars.

The six-month and one-year premiums on forward dollars closed at 0.74 per cent and 0.80 per cent.

Money market

Sentiment: Bullish

Prices of government securities during the day went up by 20-25 paise whereas the most tradable security was 10.25 per cent 2021.

The 10-year 7.38 per cent 2015 gilt closed at 7.02 per cent.

Volumes on the order matching system amounted to Rs 1250 crore, just for trading in 10.25 per cent 2021.

Call rates ruled easy at 5 per cent with reverse repo bids at Rs 37,000 crore.

At the auction on Thursday, 8.07 per cent 2017 and 7.50 per cent 2034 papers were sold at a cut-off yield of 7.14 per cent and 7.44 per cent.