Rupee surges; Gilts slump

MARKETS REPORT

Outlook
The rupee is expected to open between 45.33 and 45.37 against the greenback on Thursday.

Sentiment: Bearish

• The rupee opened at 45.42/44 per dollar and closed higher at 45.35/37.
• Forward dollars of all maturities traded at premium. Annualised premium on six-month and one-year dollars closed at 0.20 per cent and 0.26 per cent respectively.

Money market

Sentiment: Bearish

• Government security prices slid across the board as mutual funds and banks went on a selling spree.
• Prices of long-term securities fell by 25-30 paise, while those of medium-term gilts dipped by 10 paise.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed at 5.30 per cent, compared with 5.29 per cent on Tuesday.
• Call money rates were comfortable.
• Subscriptions to repo auctions stood at Rs 13,000 crore.