Re recovers after intra-day weakness, ends at 45.23/$

MARKETS REPORT

Forex market

Outlook: The rupee is likely to open in the 45.18-45.25 band on Thursday.

Sentiment: Bearish

• The rupee opened at 45.22-24 levels against the dollar, touched 45.41-43 and ended the day at 45.23
• The forward premiums edged up sharply. The six-month premium closed at 1.37 per cent and The 12-month at 1.01 per cent

Money market

Sentiment: Bullish

• Yield on the 7.37 per cent government paper closed at 7 per cent
• Bonds edged up after easing in the previous three sessions, on hopes that cash surpluses would improve in the next few days due to government spending
• Cash surpluses had dwindled after last week's advance tax payments of about Rs 20,000 crore
• Traders are worried that IMD redemption on December 29 would tighten money supply further
• The market was also supported by steady crude oil prices at about $58 a barrel
• Call rates opened at 6.35-6.45 per cent levels and ended at 6.40 per cent