Re ends lower at 43.90/$, gilts up

MARKETS REPORT

Forex market

Outlook
The spot rupee is expected to open in the range of 43.88/91 to a dollar

Sentiment: Bearish

The spot rupee opened at 43. 83/84 to a dollar but lost to 43.95 before closing for the day at 43.89/90 to a dollar.

The six-month and one-year forward dollars closed at 0.42 per cent and 0.55 per cent respectively.

Money market

Sentiment: Bullish

With clearing up of the uncertainty on the oil front, volumes in gilts market went up to Rs 5,000 crore against Rs 3,000 crore on Monday.

Prices of long-term papers went up by 10 paise, whereas medium-tenure papers saw prices rise by 7 paise.

The 10-year gilt closed at 7.01 per cent.

Call rates remained comfortable at 5.05 per cent with reverse repo bids at Rs 48,000 crore.

The corporate bond market was active with tier-II issues of the banks.