Rupee rises, Forwards surge too

MARKETS REPORT

Forex market

Outlook
The rupee is expected to open between 45.85 and 45.90 against the dollar on Friday.

Sentiment: Choopy

• The rupee opened at 45.93/96 per dollar and ended higher at 45.87/88. It touched a high of 45.83 in intraday trades.
• Premiums on forward dollars went up sharply. Annualised premiums on six-month and one-year dollars ended at 1.80 per cent and 1.58 per cent respectively.

Money market

Sentiment: Bearish

• Even though the Fed rate hike lifted the gilts market sentiment, auction results during the latter part of the session dampened the bullishness.
• Prices of long-term securities shot up by a rupee, while those of medium-term gilts increased by 50-60 paise.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed lower at 5.86 per cent.
• Call money rates ended at 4.20-4.30 per cent.
• Subscription at the repo window stood at Rs 12,000 crore.