Re weakens further, drops to 44.05/$

MARKETS REPORT

Forex market

Outlook
Traders see the local currency opening at 44.05-44.08 and further weakening on Wednesday.

Sentiment: Bearish

The rupee opened at 43.97/98 and weakened to 44.05 at the close

There was good demand for dollar which was attributed to rollover of some contracts. A few foreign banks bought the greenback to fund their own books

Both the six-month and the 12-month premium ended the day at 0.66 per cent.

Money market

Sentiment: Bearish

The market saw a downturn of about 20-25 paise on the back of US yields firming up and the hike in global oil prices

The ten-year benchmark yield closed at 7.0272 per cent. Dealers are not likely to take any position at the end of the September quarter

Calls opened at 5.10 per cent and ended at 5-5.05 per cent amidst comfortable liquidity.

On the whole, traders foresee no major buying interest with gilt yields slated to firm up in the first week of October