Rupee gains; Gilts tumble on Fed worries

MARKETS REPORT

Outlook
The rupe is expected to open in the range of 44.45-45.95 against the greenback on Thursday.

Sentiment: Bullish

• The rupee ended higher at 44.98/99. It touched an intraday high of 44.97, which triggered RBI intervention to sell dollars.
• Premiums on forward dollars rose as banks entered into sell-buy swaps expecting exporter coverings later this week. Annualised premium on six-month and one-year dollars closed at 0.20 per cent and 0.24 per cent respectively.

Money market

Sentiment: Bearish

• Government securities prices slid across the board as Alan Greenspan, the Federal Reserve chief, signalled tightening of US monetary policy.
• Prices of long-term securities fell by 20 paise, while those of medium-term securities dipped by 5-10 paise.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed at 5.29 percent.
• Call money rates ended in the range of 4.25-4.30 per cent.
• Repo subscriptions stood at Rs 9,200 cr.