Re ends firm at 44.45

MARKETS REPORTS

Forex market

Outlook
The rupee might test 44.44 $ if the Reserve Bank of India continues to abstain from the market.

Sentiment: Bearish

• The rupee continued its march northward and ended the day up 19 paise at 44.44-44.45 to the dollar against its previous 44.64.
  
  
• Forwards eased slightly, tracking the sharp appreciation in the spot rupee.

Money market

Sentiment: Bearish

• Government cancelled Rs 8,000 crore worth of borrowing due between December 1-8.
  
  
• Government says it may borrow less in 2004-05 as it has about Rs 22,000 crore of cash balance with RBI.
  
  
• Yield on 7.38 per cent bond fell by a sharp 30 basis points to 6.89 per cent.
  
  
• RBI raised cut-off price at the auction of 91-day treasury bills to Rs 98.73 from Rs 98.70. The 91-day yield fell to 5.15 per cent from 5.28 per cent last week