Re falls; gilts rise

MARKETS REPORT

Forex market

Outlook: The rupee is expected to move in the range of 44.05-44.20 per dollar on Friday.

Sentiment: Bearish

• The rupee ended weaker at 44.14 per dollar on RBI intervention and also as the greenback gained ground against major global peers.
• Discounts on forward dollars continued to rise on account of acute cash-dollar shortage.

Money market

Sentiment: Bearish

• Prices of government securities went up on the back of liquidity-driven buying.
• The yield on the benchmark 10-year gilt ended lower at 5.06 per cent, compared with 5.07 per cent on Wednesday.
• Hectic activity was witnessed in the longer end of yield curve.
• The yield on the 18-year 8.35 per cent gilt ended at 5.6566 per cent, compared with 5.6657 per cent on Wednesday.
• Call money rates ended flat at 4.00-4.25 per cent.