Re falls to 45.26/$

MARKETS REPORT

Forex market

Outlook
The rupee is likely to open with a gap on Wednesday at 45.20-21

Sentiment: Volatile

The rupee opened at 45.06/08 levels, rose to 45.23/24 levels and closed at 45.25/26 against the dollar

Premiums on the six-month forwards ended at 1.37 per cent as against Monday's closing levels of 1.7 per cent and the annualised premia closed at 1.02 per cent (1.2 per cent)

Money market

Sentiment: Bearish

Bonds eased for a second session due to a squeeze on banks' cash surpluses before the IMD redemption slated for December 29

Yield on the 8.07 per cent 12-year bond was at 7.2224 per cent in thin trades, above Monday's close of 7.2187 per cent

Dealers opined that the market could improve only once the IMD redemption is over

The overnight call money rate was at 6.90/7.0 per cent on Tuesday due to the temporary liquidity crunch

RBI did not absorb any bids through its morning reverse repo auction but infused Rs 17,835 crore at 6.25 per cent. It mopped up Rs 480 crore at 5.25 per cent under second liquidity adjustment facility and injected Rs 3,580 crore at 6.25 per cent