Re rose up to 44.18/$

MARKETS REPORT

Forex market

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

Sentiment: Bearish

The rupee, in a volatile trade, rose up to 44.18 per dollar aided by sizeable flows into the domestic equity market

In the forwards segment, premiums edged up tracking the call rates. The six-month premium closed at 2.52 per cent and the 12-month premium ended at 2 per cent.

Money market

Sentiment: Bearish

Gilt prices plummeted by almost a rupee for the second consecutive day reacting to the unexpected hike in the reverse repo and repo rates by 25 basis points

Yield on the actively traded 8.07 per cent 2017 government paper rose to 7.44 per cent as against the previous close of 7.31 per cent

Yield on the nine-year paper increased to 7.26 per cent as against the previous close of 7.18 per cent

Call rates closed at 7.25 per cent today as banks covered their requirements for two days on the account of the holiday on the Republic Day

The RBI mopped up Rs 30 crore through the morning reverse repo auction and infused Rs 19,310 crore