Rupee sheds on oil price rise

MARKETS REPORT

Forex market

Outlook: The spot rupee is expected to open in the range of 45.89-93 to a dollar on Friday.

Sentiment: Bearish

• A rise in oil prices to $48 per barrel pushed down the spot rupee to an intra-day low of 45.9450 on Thursday. It opened at 45.90/91 and closed at 45.91/92 against the dollar.
• Forward dollar premiums remained range-bound with the six-month and one-year premiums closing at 1.82 per cent and 1.56 per cent, respectively.

Money market

Sentiment: Bullish

• Reports that the finance ministry has temporary postponed MSBs and the prime minister hinting at a stable interest rate scenario perked up gilt prices on Thursday.
• The prices of long-term gilts jumped up by Rs 1.20, while short-end and medium-term papers moved up by 32-40 paise.
• The 10-year benchmark 7.37 per cent 2014 paper closed at 6.16 per cent as against Wednesday's close of 6.15 per cent.
• Call rates softened, while repo outstandings hovered around Rs 15,817 crore.