Re ends at 44.27/$

MARKETS REPORT

Forex market

Outlook:
Traders say the rupee is unlikely to strengthen beyond the Rs 44.20 level

Sentiment: Bearish

The rupee closed at Rs 44.26/27 per dollar, down from Rs 44.19/20 Friday last, amid dollar hitting a six-week high against the euro.

The forward dollar premium was slight lower. The one-month premium closed at 2.89 per cent against 2.91 per cent on Friday and the six month premium at 2.03 per cent against 2.04 per cent.

Money market

Sentiment: Bearish

Gilts closed largely stable giving up early gains ahead of a Rs 5,000 crore government bond auction.

Call rates closed at the opening levels of 7.00-7.10 per cent

Traders say there is a likelihood of a change in the auction timing as the liquidity-starved market just last week absorbed a Rs 6,000 crore auction. The fresh auction is slated between February 14-22.