Re ends tad weaker at 44.23/$

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 weaker at 44.23 per dollar against its previous close of 44.20.

The six-month forward premium closed at 1.84 per cent against its previous close of 2.10 per cent, while the 12-month premium ended at 1.48 per cent against its previous close of 1.64 per cent.

Money market

Sentiment: Bearish

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

The Centre will auction 7.46 per cent 2017 gilt and 7.40 per cent 2035 gilt each for Rs 3000 crore tomorrow.

The 8.07 per cent 2017 gilt ended at 7.32 per cent against its Friday's close of 7.34 per cent.

Call rates rose to 7 per cent in anticipation of a possible strain on liquidity on account of auction outflows.

The RBI did not receive any bids at the morning reverse repo auction even as it infused Rs 14,605 crore into the system at 6.50 per cent.

The RBI absorbed Rs 100 crore through the second reverse repo auction even as it infused Rs 3,315 crore at 6.50 per cent.