Re surges to 43.74/$ due to heavy forex inflows

MARKETS REPORTS

Forex market

Outlook: The spot dollar is expected to open in the range of 43.71/74 to a dollar on Thursday.

Sentiment: Bullish

• Heavy forex inflows lifted the rupee to an intra-day high of 43.68 on Wednesday after opening at 43.73/74 to a dollar and closing at the same level.
• Forward dollar premiums tracked the spot rupee and marginally firmed up with the six-month and one-year dollars closing at 1.45 per cent and 1.33 per cent, respectively.

Money market

Sentiment: Bullish

• Though heavy buying by the Life Insurance Corporation led to an upbeat sentiment on Wednesday, the market remained range-bound before the Budget.
• Prices of government securities across maturities moved in a band of 15-20 paise.
• The 10-year benchmark 7.38 per cent 2015 paper closed at 6.51 per cent.
• Call rates ruled at 4.70/75 per cent and reverse repo bids were at Rs 26,000 crore.