Re firms up to 43.77/$

MARKETS REPORT

Forex market

Outlook: The spot rupee is expected to open in the range of 43.74/78 to a dollar.

Sentiment: Bullish

• The spot rupee opened at 43.85 and moved up to 43.75 before closing a tad lower at 43.76/77 to a dollar.
• Forwards tracked the rupee and the six-month and one-year premiums closed at 1.62 per cent and 1.27 per cent.

Money market

Sentiment: Bullish

• Prices of government securities went up following the statement by the government that the auction might not be necessary as there is a credit in RBI account.
• Long and medium-tenure gilt prices went up by almost 70-80 paise, whereas short-tenure prices moved up by 30-40 paise.
• The benchmark 7.38 per cent 2015 gilt closed at 6.55 per cent as against 6.62 per cent.
• Call rates softened on the back of surplus liquidity to 5.75/80 per cent.