Re ends weaker at 44.20/$

MARKETS REPORT

Forex market

Sentiment: Bearish

The rupee ended the day weaker at 44.20 per dollar against its previous close of 44.12 tracking.

Dollar gained strength from the fact that the US Fed raised rates by 25 basis points for the 14th consecutive time.

In the forwards segment, premiums came off tracking the spot rupee. The six-month premium closed at 2.37 per cent and the 12-month premium ended at 1.80 per cent.

Money market

Sentiment: Bearish

Gilt prices moved in a range of 25 to 30 paise but ended a tad weaker amid some profit booking by banks.

The yield on the actively traded 8.07 per cent 2017 gilt ended at 7.36 per cent.

The market is expected the auction to get cancelled, which is scheduled between 1 and 7 February.

Call rates closed at 7.10 per cent today amid tight liquidity in the domestic banking system.

The RBI mopped up Rs 25 crore through its morning reverse repo auction and infused Rs 9,200 crore into the system at 6.50 per cent.