Re finishes lower at 43.51/$

MARKETS REPORT

Forex market

Outlook
The spot rupee is expected to open in the range of 43.49-53 to a dollar on Tuesday.

Sentiment: Volatile

The worldwide rise in the dollar led to a weak opening of the spot rupee on Monday at 43.51/51 to a dollar. It touched an intra-day low of 43.59/60 and looked up to close at 43.50/51.

Forward premiums remained range-bound with the six-month and one-year dollars closing at 2.04 per cent and 1.71 per cent, respectively.

Money market

Sentiment: Bullish

With the auction cut-off yield for the 2022 paper at 7.34 per cent, gilt prices rallied on buying support from nationalised banks on Monday.

Long-term paper prices went up by almost Rs 2, while medium-term gilts moved up in the Rs 1.20-1.50 band.

The 10-year benchmark 7.38 per cent 2015 ended at 6.55 per cent as against Saturday's closing of 6.72 per cent.

Call rates moved in the range of 4.70/80 per cent whereas reverse repo bids were at Rs 16,000 crore.

The spread between the 5-year corporate bond and the underlying security was at 50 basis points.