Re, gilts continue to slide

MARKETS REPORT

Forex market

Outlook: The rupee is expected to move in the range of 45.40-45.45 against the greenback on Friday.

Market Sentiment: Bearish

• The rupee opened at 45.37/38 per dollar and ended lower at 45.41/42 on the back of month-end demand from importers. It touched an intraday low of 45.54 per dollar.
• Discounts on forward dollars narrowed. Annualised discounts on six-month and one-year dollars ended at 0.53 per cent and 0.11 per cent respectively.

Money market

Sentiment: Bearish

• Prices of longer-term government securities fell by 35-50 paise, while those of medium-term gilts dipped by 20-25 paise.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed higher at 5.21 per cent, compared with 5.19 per cent on Wednesday.
• Call money rates remained in the range of 4.25-4.30 per cent.
• Repo subscriptions stood at Rs 13,560 crore.