Re drops to 43.82/$

MARKETS REPORT

Forex market

Outlook: The spot rupee is expected to open in the range of 43.80/83 to a dollar on Wednesday.

Sentiment: Bullish

• The spot rupee opened at 43.78/79 and rose to 43.76 on Tuesday before dipping to close at 43.81/82 due to month end demand and RBI intervention.
• Forward dollar premiums went up with the six-month and one-year premiums closing at 1.66 per cent and 1.42 per cent, respectively.

Money market

Sentiment: Cautious

• A high government borrowing programme in the first half of the new fiscal led to a bearish market on Tuesday. However, the market recovered to avoid trading loses in the year end.
• The 10-year benchmark, 7.38 per cent 2015 paper closed at 6.66 per cent.
• Prices of short-and- medium-term papers went up by 10-25 paise.
• Call rates ruled easy at 4.60 per cent. Reverse repo bids were at Rs 32,000 crore.