Gilts slump owing to lack of buying interest

MARKETS REPORT

Forex market

Outlook: The spot rupee may open in the range of 45.00-45.05 to a dollar today.

Sentiment: Bullish

• The spot rupee, which opened at 45.0350/0450 to a dollar, slipped to 45.1350 on the back of dollar buying by major domestic corporates.
• The rupee-dollar exchange rate closed higher at 45.02/03 on dollar sales by public sector banks on behalf of RBI.
• Forward dollar premiums came off with the six-month and one-year forwards closing at 0.06 per cent and 0.14 per cent, respectively.

Money market

Sentiment: Bearish

• Lack of buying interest led to across-the-board fall in government security prices.
• Long-term government security prices declined by around 35-40 paise, while medium-term papers moved up by 15-20 paise.
• The 10-year benchmark 7.37 per cent 2014 paper closed at 5.28 per cent.
• Call money rates ruled in the range of 4.25-4.3 per cent, while repo subscriptions were worth Rs 11,250 crore.