Re steady at 43.72/$, gilts rally

MARKETS REPORT

Forex market

Outlook
The spot rupee is expected to open in the range of 43.69/71 to a dollar.

Sentiment: Bearish

The spot rupee appreciated on the back of foreign inflows to end at 43.7150/7250 per dollar.

Forwards came off due to lack of demand, and the six-month and one-year premiums closed at 2.08 per cent and 1.78 per cent, respectively.

Money market

Sentiment: Bullish

With oil prices coming down, buying demand for government securities emerged, lifting their prices.

The prices of government securities in the short and the medium terms rose by 10-20 paise.

The ten-year benchmark 7.38 per cent paper maturing in 2015 closed at 6.70 per cent.

Call rates ruled at 4.70/75 per cent, while reverse repo bids totted up to Rs 23,000 crore.