Rupee, Gilts plunge

MARKETS REPORT

Outlook
The rupee is likely to open between 46.24 and 46.28 against the greenback on Friday.

Sentiment: Bearish

• The rupee opened at 46.15/18 per dollar and ended lower at 46.26/27. It touched a low of 46.31 in intraday trades.
• Premiums on forward dollars slid. Annualised premiums on six-month and one-year dollars closed at 2 per cent and 1.65 per cent respectively.

Money market

Sentiment: Bearish

• Government security prices tumbled across the board on apprehensions that the headline inflation rate may end higher this week too.
• Prices of long-term gilts slid Re 1.20, while those of medium-term securities lost Re 1.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed at 5.94 per cent, compared with 5.84 per cent on Wednesday.
• Call money rates ended flat at 4.20-4.30 per cent.