Re rebounds to close at 43.70/$

MARKETS REPORT

Forex market

Outlook
The spot rupee is expected to open in the range of 43.68/71 to a dollar on Friday.

Sentiment: Volatile

The rupee opened at 43.79/80 and reached the day's low of 43.83 before recovering to close at 43.69/70 supported by dollar sales by an IT major.

Forwards ended higher on the back of corporate demand with six-month and one-year premiums closing at 1.08 per cent and 1.11 per cent.

Money market

Sentiment: Bullish

A fall in yields of US treasury and domestic popular government stocks in the forthcoming auction triggered value buying.

Prices of government securities went up across the board by 10-15 paise.

The 10-year paper 7.38 per cent 2015 closed at 6.91 per cent.

Call money rates ruled at 5.05 per cent, while reverse repo bids were at around Rs 23,000 crore.

The government will auction 7.37 per cent 2014 and 10.25 percent 2021 on June 6 for Rs 6,000 crore and Rs 4,000 crore, respectively.