Re moves up to 45.35/$

MARKETS REPORT

Forex market

Outlook:
The spot rupee is likely to open in the 45.30 levels against the dollar on Monday

Sentiment: Bullish

The spot rupee rose to 45.35 per dollar against the opening level of 45.48 and the previous close of 46.42 on account of adequate dollar supplies into the market

Premiums on the six-month and the 12-month forwards closed at 1.07 per cent and 0.83 per cent, respectively

Money market

Sentiment: Bearish

Prices of government securities fell by 15 paise following the RBI governor Y V Reddy's comments on tight liquidity in the system

Reddy said the market liquidity is likely to get squeezed ahead of the redemption of India Millennium Deposits (IMD) this month

Yield on the nine-year government paper almost nudged the seven per cent mark

Call rates traded in the 6.30/6.40 per cent band on account of tight cash

RBI absorbed Rs 3390 crore through its morning reverse repo auction at 5.25 per cent

It mopped up Rs 20 crore at 5.25 per cent and infused a sum of Rs 1,085 crore at 6.25 per cent under second liquidity adjustment