Spot Re fells to 44.24/$

MARKETS REPORT

Forex market

Outlook:
Traders expect the rupee to open at 44.30 depending upon the dollar's movement overseas.

Sentiment: Bearish

The rupee fell by 10 paise to close at 44.24 per dollar on Friday.

The rupee looks choppy and lacks clear direction, which can be underscored by the fact that there is a huge gap between closing and opening levels. For example, the rupee closed at 44.13 per dollar yesterday but opened with a hige gap at 44.26/27 on Friday.

In the forwards segment, six-month premium closed at 1.86 per cent and the 12-month premium ended at 1.37 per cent.

Money market

Sentiment: Bearish

Gilt prices fell by 10 paise in a cash tight market.

The 8.07 per cent 2017 paper closed at 7.20 per cent from 7.1913 percent at the start of trading. The gilt was not traded on Thursday.

Call rates closed higher at 7.50 per cent even as it rose to a 3-1/2-year high at 8 per cent.

Banks have covered their positions in the first week of the reporting fortnight. This has pushed up call rates to these levels.

The RBI mopped up Rs 25 crore through the morning reverse repo auction and infused Rs 26,135 crore into the domestic banking system.