Re drops to 43.53/$, gilts steady

MARKETS REPORT

Forex market

Outlook
The spot rupee is expected to open in the range of 43.50-54 to a dollar on Friday.

Sentiment: Volatile

The spot rupee opened at 43.44, but closed at a low of 43.52-53 to a dollar, backed by dollar-buying by PSU banks.

Premia on the forward-dollars fell, with spot-rupee appreciation with six month and one-year dollars closing at 0.91 per cent each.

Money market

Sentiment: Dull

The government securities market remained on a lacklustre mode, due to lack of positive triggers, even as the Bank of England opted for a repo rate cut today.

The prices of the securities moved in a five-paise band.

The call rates ended soft at 5.05 per cent, with reverse repo bids at Rs 45,000 crore.

The ten-year paper, 7.38 per cent 2015, closed at 6.97 per cent.

The gilt market, closed at a volume of Rs 1400 crore, while Rs 700 crore worth deals were struck on the order-matching system.