Rupee ends firmer, Gilts continue to slide

MARKETS REPORT

OUTLOOK
The rupee is expected to open between 46.05 and 46.10 against the dollar on Thursday.

Sentiment: Bearish

• The rupee ended firmer at 46.0450/0600 per dollar. It touched a low of 46.1200 and a high of 45.9300 in intraday trades.
  
  
• Premiums on forward dollars ended lower. Annualised premium on six-month dollar ended at 1.66 per cent, compared with 1.69 per cent on Tuesday.

Money Market

Sentiment: Bearish

• Government security prices gave more ground on renewed selling, following fears of strained liquidity ahead of the Centre's huge borrowing programme.
  
• Prices of short and medium-term securities fell by 5-25 paise and those of long-term gilts slipped by 30 paise.
  
• The yield on the 10-year benchmark security closed at 5.8432 percent, compared with 5.8435 per cent on Tuesday.
  
• There was no trading in the call money market due to Reserve Bank India's yearly closure of accounts.