Re scales to 6 year high at 43.28/$

MARKETS REPORT

Forex market

Outlook
The spot rupee is expected to open in the range of 43.25/29 to a dollar on Thursday.

Sentiment: Bullish

The spot rupee opened at 43.43/44 on Wednesday but appreciated to a six-year high to close at 43.27/28 to a dollar.

Forward premiums came off with the six-month and one-year closing at 1.50 per cent and 1.20 per cent, respectively.

Money Market

Sentiment: Bullish

The gilts market opened low on Wednesday with the RBI announcing a state development loan of Rs 8,000 crore. The sentiment perked up with the appreciation in the rupee.

Prices of long-and-medium term papers moved up in the range of 20-25 paise.

The 10-year benchmark 7.38 per cent 2015 paper closed at 7.19 per cent whereas the 12-year 8.07 per cent 2017 paper ended at 7.43 per cent.

Call rates closed at 5.05 per cent whereas reverse repo bids slipped to Rs 17,000 crore owing to reporting Friday positioning.

No trading was witnessed in the corporate bonds market due to a strike by bond traders.