Spot Re firms up to 44.83/$

MARKETS REPORT

Forex market

Outlook
Rupee seen strengthening on Tuesday

Sentiment: Bullish

Rupee close to a 7-month peak

Rupee closed at 44.83 per dollar against 44.98 last week.

6-mth forward dollar premium up to 0.63 per cent from 0.45 per cent.

Money market

Sentiment: Bearish

Bond prices fell ahead of the scheduled Rs 8,000 crore government bond auction between December 1 and December 8.

Market expects government to put off the auction as it has cash surplus with the Reserve Bank of India (RBI).

The yield on the benchmark 7.38 per cent 2015 bond rose to 7.22 per cent against 7.19 on Saturday.

Call money rate was unchanged at 4.70 per cent.