Rangebound rupee ends higher

MARKETS REPORT

Forex market

Outlook
The rupee is expected to open in the range of 45.82-88 to a dollar on Monday.

Sentiment: Bearish

• The spot rupee remained range-bound on Friday after opening at 45.90-45.92. The currency touched an intra-day high of 45.97-45.98 before closing at 45.85-45.87 to a dollar.
• Forward dollar premiums inched up on importer and inter-bank demand with the six-month and one-year premiums closing at 1.47 per cent and 1.24 per cent, respectively.

Money market

Sentiment: Bearish

• Gilt prices crashed on Friday with the weekly inflation figure rising to 5.85 per cent.
• Long-term gilts were inactive, while prices of medium-term papers saw a fall of around Rs 1.50. Short-term gilts fell by around 50-60 paise.
• The 10-year benchmark 7.37 per cent 2014 closed in the 5.80 per cent range, after reaching an intra-day high of 5.86 per cent.
• Call rates remained in the 4.25-4.30 per cent band, while repo subscription was at around Rs 8,000-9,000 crore.