Re slides, discount widens on forwards

MARKETS REPORT

Forex market

Outlook : The rupee is expected to open in the 43.78-43.90 band against the dollar on Tuesday.

Sentiment: Bearish

• The rupee closed lower at 43.89/90 per dollar, sliding off an intraday high of 43.79. It closed at 43.8850/8950 on Friday.
• Discounts on forward dollars widened. Six-month dollar traded at a discount of 0.27 per cent compared with 0.10 per cent on Friday.

Money market

Sentiment: Bearish

• Government security prices ended lower as investors booked profits and consolidated their positions after last week's surplus-cash-driven rally.
• The yield on the 10-year benchmark gilt ended at 5.0679 per cent, up from its previous close of 5.0603 per cent.
• Call money rates ended lower at 4.00-4.25 per cent, compared with the previous close of 4.25-4.50 per cent.
• Yields on corporate bonds rose as investors booked profits after the recent slide and some concerns that the RBI may sell gilts under MSS.