Rupee closes flat

MARKETS REPORT

Forex market

Outlook:
The rupee is likely to open at 44.25 against the dollar

Sentiment: Bearish

The rupee closed unchanged from yesterday's close of 44.12 per dollar despite a weak dollar in the global markets.

In the forwards segment, premiums came off tracking the spot rupee.

The six-month premium closed at 2.55 per cent and the

12-month premium ended at 1.95 per cent.

Money market

Sentiment: Bearish

Gilt prices moved in a range of 25 to 30 paise as there was some value buying by banks

Yield on the actively traded 8.07 per cent 2017 paper peaked at 7.36 per cent intra-day and ended the day at 7.37 per cent

Traders expect the central bank to auction 8.08 per cent 2017 paper in the upcoming auction

Call rates closed lower at 7.10 per cent today

The RBI did not receive any bids at the reverse repo even as it infused Rs 8,920 crore at 6.50 per cent under liquidity adjustment facility

RBI infused Rs 2,710 crore through its second reverse repo auction at 6.50 per cent while the reverse repo bids aggregated to Rs 2,925 crore