Re drops to 45.21/$; gilts flat

MARKETS REPORT

Outlook
The spot rupee is likely to open in the 45.25 level to a dollar on Friday

Sentiment: Bearish

The spot rupee fell to 45.21 against the dollar for the third consecutive day as the dollar gained ground against other global currencies

The six-month forward came off to 1.18 per cent and the 12-month premium was almost flat at 0.93 per cent

Money market

Sentiment: Bearish

The government securities market was almost flat in lacklustre trade

Yield on the nine-year government paper stood at 7 per cent

Call rates fell to 5.75/5.85 per cent as there was some cash surplus in the system

RBI absorbed Rs 100 crore through its morning reverse repo auction at 5.25 per cent. It infused a sum of Rs 300 crore into the system at 6.25 per cent

The bank mopped up Rs 3,850 crore at 5.25 per cent under second liquidity adjustment facility and injected Rs 300 crore at 6.25 per cent