Re gains strength, ends at 45.69/$

MARKETS REPORT

FOREX MARKET

Outlook: The spot rupee is expected to open in the 45.70/71 range against the dollar on Monday.

Sentiment: Bullish

• The spot rupee opened at 45.78/79 and closed 18 paise higher at 45.68/69 against the dollar taking cue from the equity market



• The six-month forward premium closed at 0.54 per cent and the 12-month premium closed at 0.46 per cent

MONEY MARKET

Sentiment: Bearish

• Gilt prices fell 5-10 paise in flat trades as investors focused more on the call money market



• The 7.37 per cent 2014 paper closed unchanged at 6.98 per cent



• The gilt market was almost flat as most traders were scrambling in the call money market to meet their reserve requirements



• Call rates soared to 6.80/7.00 per cent in a cash-tight market, with reverse repo bids aggregating at Rs 1,500 crore



• RBI infused Rs 2,440 crore into the overnight call money market at 6.25 per cent through the repo window
   

The central bank has cancelled sale of bills under its market stabilisation scheme (MSS) on November after "taking into account all relevant factors"