Re ends higher at 44.12/$

MARKETS REPORT

Forex market

Outlook:
Traders expect the rupee to open at 44.25.

Sentiment: Bearish

The rupee, in a volatile trade, ended the day at 44.12 per dollar against its previous close of 44.14 aided by adequate dollar supplies.

The rupee opened at 44.26, tracking a strong dollar, and touched an intra-day high of 44.09 in noon trades.

Forward premiums edged amid rising call rates, which have been hovering around 7 per cent for the past two weeks.

The six-month premium closed at 2.78 per cent and the 12-month premium ended at 2.11 per cent.

Money market

Sentiment: Bearish

Gilts recouped losses but gains were muted ahead of a possible auction in the first week of February.

Yield on the actively traded 8.07 per cent 2017 gilt began at 7.43 per cent and touched an intra-day peak of 7.40 per cent and ended at 7.44 per cent.

The yield on nine-year gilt closed at 7.26 per cent after having opened at 7.22 per cent and touching at 7.23 per cent.

Bond market volumes shrunk to Rs 30 crore, said dealers.

Call rates closed at 7.50 per cent today.

The RBI did not receive any bids at reverse repo even as it infused Rs 10,995 crore at 6.50 per cent under the liquidity adjustment facility.

RBI infused Rs 3,035 crore through its second reverse repo auction at 6.50 per cent, while reverse repo bids aggregated to Rs 2,285 crore.