Rupee dipped at 44.26/$

MARKETS REPORT

Forex market

Outlook:
Dealers said that with the market watchful of intervention, the rupee was likely to stay in a tight range

Sentiment: Bearish

The rupee dipped 44.25/26 per dollar, down 0.07 percent from Tuesday's close

The benchmark one-year forward premium ended at 1.84 per cent annualised, up from 1.72% Tuesday

Money market

Sentiment: Bearish

Gilts gave up gains to end broadly steady as dealers expect fresh government issues to tighten liquidity further

The government is to raise Rs 5,000 crore via 10- to 14-year bonds between February 14 and 22

The yield on the benchmark 10-year bond ended at 7.36 per cent, unchanged from Tuesday's close and off an intra-day low of 7.35 per cent.

Overnight call rates were at around 7.0 per cent

Dealers said the market was mostly cool to the fall in oil prices to below $60 a barrel