Re recovers on $ selling by RBI

MARKETS REPORT

Forex market

Outlook: The spot rupee is expected to open in the range of 46.35-42 to a dollar on Monday.

Sentiment: Bearish

• The spot rupee opened at 46.40 and went down to 46.48 to a dollar but recovered back to close at 46.37 on the back of dollar selling by the RBI.
• Forwards remained high with six-month and one-year premiums closing at 2.5 per cent and 2.05 per cent, respectively.

Money market

Sentiment: Bearish

• Gilt prices tumbled by almost Rs 1.50 paise in the long end and Re 1 in the medium tenure following the 1 percentage point hike in inflation rate at 7.51 per cent .
• The 10-year benchmark 7.37 per cent 2014 closed at 6.28 per cent as against 6.13 per cent on Thursday.
• Corporate bonds market turned completely dull with market stopping to make any quote.
• The call rates remained in the range of 4.25-50 per cent.