Re drops to 43.55/%

MARKETS REPORTS

Forex market

Outlook: The spot rupee is expected to open in the 43.52/55 range against the dollar on Tuesday.

Sentiment: Volatile

• The spot rupee opened at 43.48 but closed at 43.54/55 against the dollar as PSU banks bought the greenback
• Heavy dollar selling by exporters led to a crash in the forward dollar premiums with 6-month and one-year settling at 0.94 per cent and 0.98 per cent, respectively

Money market

Sentiment: Bearish

• Factoring in a 25 bps reverse repo rate hike, the g-sec market witnessed a fall in prices
• While prices of short-term maturities remained flat, at the long- and medium-end, prices fell by 25-30 paise
• The ten-year benchmark 7.38 per cent 2015 closed at 7.16 per cent
• Call rates ruled comfortable at 5.05/ 10 per cent with reverse repo bids at around Rs 11,400 crore
• Corporate bond market remained flat