Re firms up to 43.72/$, bonds rally

MARKETS REPORT

Forex market

Outlook
The spot rupee is expected to open in the range of 43.69/73 to a dollar.

Sentiment: Dull

The spot rupee opened at 43.76/78 and closed bit higher at 43.70/72 to a dollar.

Forwards closed in a thin market with six-month and one-year premiums at 1.87 per cent and 1.34 per cent respectively.

Money market

Sentiment: Bullish

Gilt prices rallied on the back of buying demand across the banks.

Raising margin for banks to lend to equity market activities has been interpreted as a signal of more liquidity flowing into the debt market.

The benchmark 7.38 per cent 2015 gilt closed at 6.50 per cent.

Call money rates ruled at 6 per cent owing to lack of liquidity and reverse repo bids were at Rs 210 crore.