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Weak $ props up rupee

MARKETS REPORT

Our Banking Bureau Mumbai

Last Updated : Mar 18 2013 | 2:22 PM IST

Forex market

Outlook: The spot rupee is likely to open in the range of 45.70/72 to a dollar on Thursday.

Sentiment: Bullish

The spot rupee ended the day at 45.75/76 per dollar today against yesterday's close of 45.84/85, taking cues from a weak dollar in the overseas market.

The six-month forward premium closed at 0.55 per cent, while the 12-month premium closed at 0.46 per cent.

Money market

Sentiment: Bullish

Prices of short-tenure gilts rose in a range of 5-10 paise, while prices of long-tenure papers rose by 30-35 paise ahead of tomorrow's auction.

The actively traded 7.37 per cent 2014 gilt closed at 6.965 per cent. The 10-year bond was illiquid today.

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The government will raise Rs 5000 crore from the auction of 8.35 per cent 2022 stock on November 24.

LIC is likely to be the main bidder for the auction of this long tenure paper. The insurance company had entirely bid for this government stock worth Rs 5000 crore in an earlier auction.

Call rates fell to 5.30/5.40 per cent with reverse repo bids aggregating to Rs 8,140 crore.

Liquidity is likely to ease further as the government has stepped up its spending.