Re steady at 43.66/$, gilts rally

MARKETS REPORT

Forex market

Outlook
The rupee is expected to trade in a range of 43.65-45.70 on Monday.

Sentiment: Bearish

The rupee closed unchanged at 43.65/66 on Friday, recovering from the day's low of 43.70.

Dollar buying on the back of high oil prices in early trade weakened the rupee.

FII inflows and exporter selling at 43.70 propped the currency.

The market has factored in a 25 basis point hike in the US interest rate ahead of the Fed meeting on Tuesday.

Money market

Sentiment: Bullish

Gilt prices were volatile on Friday. Prices fell on news of a high inflation figure but later recovered on buying interest. Bond prices across-the-board were up by 20-40 paise at close.

The benchmark 10-year, 7.38 per cent 2015 paper closed 40 paise up at Rs 105.45.

The liquidity situation was comfortable with call rates at 4.75-4.80 per cent.

The RBI sucked out excess liquidity worth Rs 31,000 crore from the system.