Re surges to 43.82/$

MARKETS REPORTS

Forex market

Outlook: The spot rupee is expected to open in the range of 43.79/81 to a dollar on Wednesday.

Sentiment: Volatile

• The spot rupee opened at 43.78/80 on Tuesday and surged to 43.75 on the back of dollar inflows. The currency closed at 43.81/82 to a dollar, followed by dollar buying by RBI.
• The premium on forward dollars came off as the market bought cash dollars, fearing cash dollar shortage. Six-month and one-year forward dollars closed at 1.27 per cent and 1.20 per cent, respectively.

Money market

Sentiment: Bearish

• The announcement of the state development loan on Tuesday led to profit booking, followed by a fall in gilt prices.
• Prices of long-term government papers fell by 18-20 paise, while short-and-medium term papers saw a price fall of 10-15 paise.
• The 10-year benchmark 7.38 per cent 2015 paper closed at 6.52 per cent.
• Sixteen state governments will borrow Rs 6,300 crore on February 27 through the tap-sale of 7.17 per cent state government loan maturing in 2017.