Upsurge continues as Re ends higher

MARKETS REPORT

Forex market

Outlook
The spot rupee is expected to open in the 46.29-46.35 range to a dollar on Thursday.

Sentiment: Bearish

• The spot rupee opened at 46.40-43 on Wednesday and slipped to 46.47. The currency closed higher at 46.31 on dollar selling by public sector banks.
• Forward premiums inched up on corporate demand with the six-month and one-year premiums closing at 2.71 per cent and 2.42 per cent, respectively.

Money market

Sentiment: Bearish

• Gilt prices crashed on Wednesday in the wake of rising inflation and a possible tight money policy by the RBI.
• The 10-year benchmark gilt yield closed at 6.5 per cent after reaching an intra-day high of 6.75 per cent.
• The prices of short and medium-term gilts fell by Rs 1.50. The prices recovered by around Rs 1.30 by the end of the day.
• Call rates rose to 5.75 per cent on Wednesday in the wake of liquidity shortage owing to RBI intervention in the forex market.