Re ends at 44.37/$

MARKETS REPORT

Forex market

Outlook:
Rupee to open today around 44.41/43

Sentiment: Lacklustre

The rupee opened at 44.41/43 levels, but saw some weakening in morning sessions on buying interest from foreign banks. It rose to 44.45/50 during the day and closed the day at 44.36/37 levels.

Forward premiums edged up as participants weren't sure about the liquidity scenario. The yield on the six-month premium rose to 2.45 per cent (2.32 per cent), while that on the annualised premium rose to 1.97 per cent (1.90 per cent).

Money market

Sentiment: Bearish

The gilt market moved in rangebound trade today.

The benchmark 8.07 per cent 2017 paper opened the day at Rs 105.42 levels, touched a low of Rs 105.35 and closed at Rs 105.39. The yield at close was 7.3408 against its opening level of 7.3375.

As such, market participants shied away from taking positions expecting auction announcements. The government is expected to raise Rs 50 billion ($1.1 billion) from the market in a sale of 10- to 14-year bonds before February 22.

Dealers said uncertainty about the auction persisted. In case the auctions get postponed or cancelled, traders foresee yields rising by 10 paise in Tuesday morning trades.

Call rates opened the day at 7.00-7.10 per cent levels and hovered in that range for most part of the day. However, the rates closed at 6.90-7.00 per cent levels.