Rupee ends at 47-month high, gilts flat

MARKETS REPORT

Outlook: The rupee is expected to open between 43.66 and 43.69 against the dollar on Tuesday.

Forex market

Sentiment: Bullish

• The rupee ended at a 47-month peak of 43.6750/6850 per dollar on foreign fund inflows yesterday.
• Premiums on dollar forwards eased. The annualised premium on six-month dollar ended at 0.55 per cent.

Money market

Sentiment: Flat

• Government security prices ended flat in rangebound trades yesterday.
• Prices initially succumbed to selling pressure but a mild rally in fag-end trades managed to cut losses.
• The yield on the benchmark 10-year paper rose to 5.13 per cent from the previous day's closing of 5.12 per cent.
• Call money rates ended lower at 4.00-4.25 per cent on the back of ample liquidity and thin demand.
• Subscriptions to seven- and 14-day repos stood at Rs 32,350 crore and Rs 6,150 crore respectively.