Rupee bounces on RBI's intervention

MARKETS REPORT

Forex market

Sentiment: Bearish

• The spot rupee opened at 45.26/27 and fell to a low of 45.41 before closing at a high of 45.15/16 following verbal intervention by the RBI.
• The six-month and one-year forward dollars closed at 0.50 per cent and 0.46 per cent respectively.

Money market

Sentiment: Bearish

• Prices of government securities fell during the day following a bearish sentiment. Short and medium-term papers fell by 5-15 paise.
• Call rates ruled at 5.10 per cent, while reverse repo bids were at Rs 15,000 crore.
• The benchmark 10-year paper closed at 7.18 per cent.
• The RBI raised the 91-day and 182 day t-bill rates to 5.53 per cent and 5.78 per cent against market expectation of 5.49 per cent and 5.70 per cent, respectively.