Re ends at 43.66/$; gilts remain rangebound

MARKETS REPORT

Forex market

Outlook: The spot rupee is expected to open in the range of 43. 63/67 to a dollar on Wednesday.

Sentiment: Bearish

• The spot rupee opened at 43. 59/60 to a dollar and closed at 43. 65/66 after reaching the day's low of 43.7050.
• Forwards shot up following dollar demand with the six-month and on-year premiums closing at 0.64 per cent and 0.70 per cent.

Money market

Sentiment: Bearish

• Government securities remained rangebound amid lacklustre trading.
• To suck out excess liquidity, the RBI announced a surprise auction of 11.92 per cent 2017 gilt to raise Rs 6,000 crore under MSS.
• The 10-year 7.38 per cent 2015 gilt closed at 7.07 per cent.
• Reverse repo bids amounted to Rs 32,000 crore with call rates ruling at 5.05 per cent.