Long gilts rally, Re spikes to 44.48/$

Money market

Sentiment: Bullish

• Lack of supplies in the auction schedule for the first half of the next fiscal led to a rally in long-term government securities.
• Prices of 15-20 year securities went up by 20-25 paise and those of medium-term papers moved up 10-12 paise.
• The yield on the ten-year benchmark security closed at 5.16 per cent.
• Call money rates dipped to 4.30-4.40 per cent.
• Repo subscription stood at Rs 53,000 crore.

Forex market

Sentiment: Bullish

• The rupee ended at a four-year high of 44.47/48 per dollar after opening at 44. 74/78.
• Premiums on forward dollars inched up due to importer covering. Annualised premiums on six-month and one-year forward dollars ended at 0.74 per cent and 0.64 per cent respectively.

Outlook

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The rupee is expected to open between 44.45 and 44.50 against the greenback on Monday.