Rupee at highest close since April

MARKETS REPORT

Forex market

Outlook: The rupee might test 44.55/$ if the Reserve Bank of India continues to abstain from the market.

Sentiment: Bullish

• The rupee closed at a 7-month high of Rs 44.63 per dollar on strong portfolio and trade inflows. The RBI remained on the sidelines for the second consecutive day on Tuesday.
• The six-month forward premium rose to 0.93 per cent from 0.63 per cent.

Money market

Sentiment: Bearish

• Trading was dull as players awaited the Rs 8,000 crore gilts auction due between December 1 and December8.
• The Reserve Bank of India (RBI) absorbed Rs 5,607 crore through the reverse repo auction.
• Yield on the benchmark 7.38 percent 2015 bond was 7.19 per cent against 7.21 per cent on Monday.
• Call money rate closed unchanged at 4.70 per cent.