The rupee rebounded to end firmer on Tuesday at 47.8825/8900 per dollar, after steady dollar sales by a state-run utility finance company prompted banks to unwind long positions built due to war fears. The six-month forward ended at 3.73 percent, annualised, up from the previous close of 3.56 percent.
Nervousness in gilts market
Yields on gilts ended sharply up on fears that a US-Iraq war was imminent. But they eased off following talk that the Centre would place bonds with the Reserve Bank of India (RBI) and not tap the market to raise cash to prepay foreign debt.
The benchmark 9.81 per cent 2013 bond closed at 6.1874 per cent on Tuesday, down from the day
