Gilts rebound from 13-mth low

MARKETS REPORT

Forex market

Outlook
The rupee is expected to open between 45.95 and 45.90 per dollar on Tuesday.

Sentiment: Bearish

• Sliding foreign capital inflows drove down the rupee to 45.9500/9600 per dollar, from its Friday close of 45.8300/8500.
• Premiums on forward dollars went up. Annualised premium on six-month dollar ended at an 1.53 per cent, compared with 1.45 per cent previously.

Money market

Sentiment: Bearish

• Government security prices rebounded from 13-month lows, but caution persisted ahead of US Federal Reserve meeting on Wednesday.
• The yield on the 10-year benchmark paper fell to 5.7996 per cent from a 13-month peak of 5.8631 per cent previously.
• Prices of short- and medium-term securities rallied smartly by 30-60 paise, and those of long-term gilts witnessed limited gains.
• Call money rates ended lower at 4.10-4.30 per cent.
• Subscriptions at the repo window stood at Rs 24,120 crore.