Re notched up to 44.15/$

MARKETS REPORT

Forex market

Outlook:
Traders expect the rupee to open at 44.20 against the dollar.

Sentiment: Bearish

The rupee in a volatile trade notched up to 44.15 per dollar against the previous close of 44.18 aided by adequate dollar supplies.

The rupee touched an intra-day high of 44.10 after having opened at 44.29/30 per dollar.

The six-month forward premium closed at 2.72 per cent and the 12-month premium ended at 2 per cent.

Money market

Sentiment: Bearish

Gilts recouped losses as there was some value buying by banks in the last hour of trade.

The yield on 8.07 per cent 2017 gilt fell to 7.46 per cent today from its opening of 7.51 per cent and previous close of 7.44 per cent.

Yield on the 9-year gilt closed at 7.26 per cent.

Call rates closed at 8.15 per cent today as banks were on a virtual scramble to cover their needs for three days.

The RBI mopped up Rs 25 crore through morning reverse repo auction and infused Rs 18,060 crore into the system.

RBI infused Rs 2,535 crore through its second reverse repo auction at 6.50 per cent, while reverse repo bids aggregated to Rs 15 crore.