Re continues to slip, Gilts recover

MARKETS REPORT

Outlook: The rupee is expected to open between 45.35 and 45.45 against the greenback on Thursday.

Sentiment: Bearish

• The rupee opened at 45.30/31 per dollar and ended lower at 45.40/41. The currency hit a low of 45.44/45 and a high of 45.28 in intraday trades.
• Premiums on forward dollars remained rangebound. Annualised premium on six-month and one-year dollars closed at 0.40 per cent and 0.41 per cent respectively.

Money market

Sentiment: Bullish

• Government security prices recovered as the US inflation data failed to support the case for a 50-basis-point hike in Fed funds rate.
• Prices of long-term prices went up by 60-70 paise, while those of medium-term securities moved up by 15-20 paise.
• The yield on the ten-year benchmark paper, 7.37 per cent 2014, closed at 5.38 per cent, compared with 5.41 per cent on Tuesday.
• Call money rates ended in the range of 4.20-30 per cent.
• Repo subscriptions stood at Rs 9150 crore.