Re ends at 44.20/$

MARKETS REPORT

Forex market

Outlook:
The rupee will open at 44.25 on Monday

Sentiment: Bearish

The rupee ended at 44.19/20 per dollar, up 0.15 percent from Wednesday's close of 45.26.

The rupee gained strength from yen's rally vis-à-vis the dollar but RBI capped the rupee's gains as it is overvalued by 10 per cent on a trade weighted basis.

In the forwards segment, the six-month premium closed at 2.04 per cent and the 12-month premium closed at 1.59 per cent.

Money market

Sentiment: Bearish

Gilt prices moved in a range of 15-20 paise, ahead of the auction slated for next week.

Yield on the benchmark 10 year gilt rose a tad to close at 7.36 per cent against its previous close of 7.35 per cent.

Call money rates eased to 7 per cent as RBI released some funds into the domestic banking system.

RBI did not receive any bids at the reverse repo window even as it infused Rs 14,445 crore through the morning reverse repo auction.

RBI mopped up Rs 180 crore at the second reverse repo auction and injected a sum of Rs 5,050 crore into the system.