Re settles at 43.85/$ after a volatile session

MARKETS REPORTS

Outlook: The spot rupee is expected to open in the range of 43.81/85 to a dollar on Monday.

Sentiment: Bearish

• The spot rupee opened at 43.79/80 on Friday and had a volatile session with an intra-day high of 43.77/78 and a low of 43.8450, before closing at 43.84/85 on the back of RBI intervention.
• Forward dollars closed high backed by export cancellations. The six-month and one-year dollars closed at 1.60 per cent and 1.38 per cent, respectively.

Money market

Sentiment: Bullish

• Even as the inflation rate came down to 5.07 per cent on Friday, gilt prices fell owing to profit-taking by banks which had bought government papers, anticipating low inflation.
• Prices of gilts across maturities fell by 10-15 paise.
• The 10-year benchmark 7.37 per cent 2015 paper closed at 6.50 per cent.
• Call money rates ruled tight in the 4.80/5 per cent range due to liquidity mismatch after Rs 26,000 crore went into the reverse repo.