Re ends down at 44.27/$

MARKETS REPORT

Forex market

Outlook:
The rupee is likely to open at 44.26/27 against the dollar on Friday

Sentiment: Bearish

The rupee closed at 44.26/27 per dollar, down from Tuesday's close of 44.20/21.

In the forwards segment, the six-month dollar premium rose to 2.08 per cent and the 12-month premiums rose to 1.64 per cent

Money market

Sentiment: Bearish

Gilt prices fell on rising expectations of a further increase in interest rates

Yield on the benchmark 10-year bond rose to 7.35 per cent from Tuesday's close of 7.33 per cent

RBI rejected all bids received at the auction of Rs 500 crore 182-day t-bills as investors bid at higher yields. The bank accepted bids at another Rs 500 crore auction of 91-day t-bills at a cut-of yield of 6.56 per cent

Call rates closed higher at 7.25 per cent as against 7.10 per cent on Tuesday

RBI injected Rs 17,350 crore into the system on Wednesday.

It received only one bid of Rs 100 crore through the reverse repo window. The reverse and repo auctions were held for two days as markets are closed on Thursday