Rupee rebounds, Gilts tumble on EPF disappointment

MARKETS REPORT

Forex market

Outlook: The rupee is expected to open between 45.96 and 46.04 against the dollar on Wednesday.

Sentiment: Bullish

• The rupee opened at 46.04/07 per dollar and ended higher at 45.98 on the back of exporters' dollar sales. It touched an intra-day low of 46.18.
• Premiums on forward dollars inched up as interbank players hedged their spot dollar purchases. Annualised premiums on six-month and one-year dollars closed at 2 per cent and 1.62 per cent respectively.

Money market

Sentiment: Bearish

• Government security prices slid on postponement of decision on the EPF interest rate.
• While there was not much trading in long-term gilts, prices of medium-term securities slipped by 15-20 paise.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed higher at 5.85 per cent, compared with 5.83 per cent on Monday.
• Call money rates ended flat at 4.25-4.30 per cent.
• Repo subscriptions stood at Rs 12,500 crore.