Re moves up to 43.76/$, gilts decline

MARKETS REPORT

Forex market

Outlook
The spot rupee may rule in the range of 43.74/78 to a dollar on Thursday.

Sentiment: Bearish

The spot rupee remained range-bound on Wednesday. The currency, which opened at 43.77/78, closed higher at 43.75/76 to a dollar.

Forward dollar premiums ruled range-bound with the six-month and one-year dollars at 1.78 per cent and 1.46 per cent, respectively.

Money market

Sentiment: Bearish

Heavy selling of gilts by a private bank hit the market sentiment on Wednesday.

Gilt prices across-the-board fell by 25-30 paise.

The 10-year benchmark 7.38 per cent 2015 closed at 6.82 per cent as against 6.73 per cent on Tuesday.

Call rates ruled comfortable with reverse repo bids at around Rs 31,000 crore.

Corporate papers remained illiquid, resulting in sharp rise in yields.