Re surges on $ sales by exporters

MARKETS REPORT

Forex market

Outlook
The rupee is likely to open between 46.34 and 46.40 against the greenback on Thursday.

Sentiment: Bearish

• The rupee opened at 46.40/41 per dollar and closed higher at 46.36/37 on the back of dollar sales by exporters.
• Premiums on forward dollars ended higher. Annualised premiums on six-month and one-year forward dollars closed at 2.50 per cent and 2.07 per cent respectively.

Money market

Sentiment: Bullish

• The government securities market cheered up the expenditure secretary's comments that the ensuing borrowing programme will comprise a mix of floater and fixed rate paper.
• Prices of long-term securities went up by almost Re 1 and those of medium-term gilts rose by 50-60 paise.
• The yield on the ten-year benchmark security slid to 6.14 per cent from 6.24 per cent on Tuesday.
• Call money rates remained comfortable in the range of 4.20-4.30 per cent.