Re fell off its two month peak to 45.24/$

MARKETS REPORT

Outlook:
The spot rupee is likely to open in the 45.20 level to a dollar on Wednesday

Sentiment: Bullish

The spot rupee fell off its two month peak to close at 45.23/24 per dollar today. The rupee fell on the back of dollar gaining ground versus the yen

Premiums on the six-month forwards inched up to 1.37 per cent while those on the 12-month closed at 1.01 per cent

Money market

Sentiment: Bearish

The government securities market was almost flat amid tight liquidity

Yield on nine-year government stock stood at 7.01 per cent

Call rates traded in the band of 6.30-6.40 per cent on account of tight cash in the system

RBI absorbed Rs 480 crore through its morning reverse repo auction at 5.25 per cent. It infused a sum of Rs 2,140 into the system at 6.25 per cent

It mopped up Rs 355 crore at 5.25 per cent under second liquidity adjustment facility and injected Rs 745 crore into the system at 6.25 per cent