Rupee, Gilts bounce back

MARKETS REPORT

Outlook
The spot rupee is expected to open in the range of 45. 72/86 to a dollar.

Sentiment: Bearish

• The spot rupee opened at 46. 25/30 but gained around 45/50 paise to close at 45.75 to a dollar on the back of dollar selling by the Reserve Bank of India.
• Premiums on forward dollars eased a bit with six-month and one-year forwards closing at 1.03 per cent and 0.93 per cent respectively.

Money market

Sentiment: Bearish

• Prices of government securities recovered with buying coming in from market players for low-priced papers.
• The prices fell in the range of 80 paise to Re one in the long and medium range.
• The 10-year benchmark 7.37 per cent 2014 closed at 5.75 per cent around similar levels as on Tuesday.
• Call money rates were at 4.25/30 per cent, repo subscription was at Rs 9,185 crore.