Rupee rebounds, Gilts slide

MARKETS REPORT

Forex market

Outlook
The rupee is expected to open between 45.45 and 45.52 against the greenback on Tuesday.

Sentiment: Bearish

• The rupee opened at 45.50 per dollar and closed higher at 45.46/48. It touched a low of 45.66 and a high of 45.44 in intraday trades.
• Annualised premium on six-month and one-year dollars closed at -0.15 per cent and 0.1 per cent respectively.

Money market

Sentiment: Bearish

• Government security prices slid as foreign banks and mutual funds went on a selling spree.
• Prices of long-term securities fell by 50 paise, while those of medium-term gilts dipped by 30-35 paise.
• The yield on the ten-year benchmark paper closed higher at 5.28 per cent.
• Call money rates hovered below 4.30-4.40 per cent.
• Subscriptions to seven-day repo auction stood at Rs 21,205 crore and those to 14-day repo at Rs 3,055 crore.