Re steady at 43.59/$, gilts rally

MARKETS REPORT

Forex market

OUTLOOK
The spot rupee is expected to open in the range of 43. 56/59 to a dollar.

Sentiment: Dull

The spot rupee opened and closed at 43.58/59. It remained rangebound with the day's low of 43.61.

The six-month and one-year forward premiums closed at 1.74 per cent and 1.49 per cent, respectively.

Money market

Sentiment: Bullish

The government securities market was bullish following the cut-off yield of 6.99 per cent for the five-year paper.

Trading remained lacklustre as the market was glued on to the auction.

Prices of medium term papers moved in the range of 10-15 paise.

The yield on 10-year paper 7.38 per cent 2015 closed at 7.25 per cent, while the auctioned paper was ruling at a yield of 6.92 per cent.

Call rates reached above 5 per cent, while reverse repo bids were at around Rs 34,000 crore.