Re ends three-week low at 44.36/$

MARKETS REPORT

Forex market

Outlook:
Traders expect the rupee to weaken as FII inflows are seen slowing

Sentiment: Bearish

The rupee was under pressure following Fed Chairman Ben Bernanke's comments of further interest rate increases.

The rupee closed at Rs 44.35/36 per dollar, a three-week closing low

The 12-month forward dollar premium was lower at 1.84 per cent against 1.86 per cent on Wednesday. The six-month forward premium was at 3.17 per cent against 3.31 per cent the previous day.

Money market

Sentiment: Cautious

The yield on the benchmark 10-year bond closed lower at 7.33 per cent as against 7.36 per cent on Wednesday

The closing yield was higher than 7.31 per cent hit before the finance minister's comments that there is no proposal to cancel the scheduled Rs 5,000 crore government bond auction before Febraury 22

The overnight call money rate closed flat at 7.00 per cent

The RBI injected Rs 10.330 crore into the system through the repo window