Rupee strengthens, Gilts tumble

MARKETS REPORT

Outlook
The rupee is likely to open in the range of 45.00-45.06 against the greenback on Tuesday.

Sentiment: Bullish

• Tracking a weakening dollar, the rupee opened at 45.04/05 per dollar and ended higher at 45.04/05. It hit an intraday high of 44.96.
• Premiums on forward dollars ended lower. Annualised premium on six-month and one-year closed at 0.03 per cent and 0.18 per cent, respectively, compared with 0.40 per cent and 0.35 per cent previously.

Money market

Sentiment: Bearish

• Government security prices tumbled as banks and primary dealers went on a selling spree.
• Prices of long-term securities slid by 50 paise, while those of medium-term gilts witnessed 20 paise fall.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed at 5.28 per cent.
• Call money rates were comfortable.
• Repo subscriptions stood at Rs 16,330 crore.