Re drops to 43.57/$, gilts move up

MARKETS REPORT

Forex market

Sentiment: Dull

• The spot rupee opened at 43.55/56 and closed a tad lower at 43.57 after touching highs of 43.53/54 per dollar.
• Forward premium closed with six month and one year dollars at 0.85 per cent and 0.70 per cent respectively.

Money market

Sentiment: Bullish

• The government securities prices moved up with easing of crude prices from highs of $ 66 per barrel to $63 per barrel.
• The prices in the long and medium term papers went up by 20-25 paise.
• The ten year paper 7.38 per cent 2015 closed at 7.06 per cent.
• Amidst reverse repo bids of Rs 36,000 crore, the call rates cosed at 5.05 per cent.
• Two government papers - 7.37 per cent 2014 and 7.50 per cent 2034 got auctioned at a cut off yield of 7.04 per cent and 7.55 per cent respectively.