Re moves up to 43.82/$, bonds rally

MARKETS REPORT

Forex market

Outlook
The spot rupee closed higher at 43.81/82 to a dollar after opening at 43.92/95.

Sentiment: Bearish

The spot rupee closed higher at 43.81/82 to a dollar after opening at 43.92/95.

Forwards remained rangebound with the six-month and one-year premium closing at 1.82 per cent and 1.39 per cent, respectively.

Money market

Sentiment: Bullish

With inflation rate at 6.39 per cent, below the RBI forecast of 6.50 per cent, government securities prices rallied cautiously.

Prices across the board went up by 35-40 paise.

The benchmark 10-year 7.38 per cent 2015 closed at 6.52/53 per cent.

Call rates were soft and funds were available at 3/3.5 per cent.

Reverse repo bids were around Rs 29,000 crore.