Re ends at 45.05/$

MARKETS REPORT

Forex market

Sentiment: volatile

The rupee opened lower at 44.99 per dollar compared with Monday's 45.09/10 close. It slid to 44.05/06 levels and rose to 44.94/92 levels, before closing at 45.04/05 levels.

The yield on the six-month forward premium ended lower at 1.07 per cent (1.15 per cent), while that on annualised premium closed at 0.85 per cent (0.90 per cent).

Money market

Sentiment: lacklustre

Federal bonds extended gains into a second session in 2006, helping by improved cash supplies.

The yield on the active 8.07 percent 11-year bond eased to 7.17 per cent from 7.17 per cent on Monday.

Liquidity in the money market has been boosted by increased government spending and interest payments of about Rs 10,000 crore on a special deposit scheme.

Call rates opened at 6.05-6.25 per cent levels and ended lower at 5.50-5.70 per cent levels owing to a fall in demand on account of reporting Friday.

Traders feel that although the market saw a movement of 10-15 basis points, it could not sustain at those levels.

With the scheduled auction slated to happen between January 3 and 11, there was no aggressive buying.