Rupee bounces back

MARKETS REPORT

Forex market

Outlook: The rupee is expected to open between 43.85 and 43.92 per dollar on Monday.

Sentiment: Volatile

• The rupee opened at 43.9702 per dollar and closed higher at 43.87/89 on central bank intervention.
• Forward dollars continued to trade at discount on the back of import demand. Six-month and one-year dollars ended at a discount of 0.15 per cent 0.05 per cent respectively.

Money market

Sentiment: Bullish

• After reeling under selling pressure for most part of the day, government securities prices rallied with the announcement of further cancellations in the May borrowing programme.
• Prices of long-term securities vaulted by 25-40 paise and those of short- and medium-term papers did not see much action.
• The yield on the ten-year benchmark paper closed at 5.07 per cent.
• Call money rates ended at 4.5 per cent.
• Repo subscriptions stood at Rs 8595 cr.