Re ends tad stronger at 44.20/$

MARKETS REPORT

Forex market

Outlook:
Rupee to open at 44.30 per dollar taking a cue from dollar's movement overseas.

Sentiment: Bearish

The rupee ended the day a tad stronger at 44.20 per dollar against its previous close of 44.23 per dollar.

The six-month forward premium closed at 1.79 per cent, while the 12-month premium ended at 1.47 per cent.

Money market

Sentiment: Bearish

Gilt prices edged up ahead of the auction, which is expected to be well bid by banks and insurance companies.

The 8.07 per cent 2017 gilt ended lower at 7.35 per cent as the cut-off of the 7.40 per cent 2017 gilt was lower than the market expectation at Rs 97.27.

Call rates closed at 7.25 per cent amid tight liquidity in the domestic banking system.

The RBI did not receive any bids at the morning reverse repo auction even as it infused Rs 12,610 crore into the system at 6.50 per cent.

The RBI absorbed Rs 70 crore through the second reverse repo auction and infused Rs 2,215 crore at 6.50 per cent.