Re touched a 12 week high of 44.58/$

MARKETS REPORT

Sentiment: Bullish

The rupee strengthened for the fourth straight session on Friday and touched a 12 week high of 44.58 per dollar despite the greenback extending moderate gains in overseas market.

The rupee opened at yesterday's levels and showed a sudden spurt in the last session on account of huge inflows into the equity market at the last minute.

Forwards marked a significant rise as the six month premium ended at 1.51 per cent, while the 12 month premium closed at 1.15 per cent.

Money market

Sentiment: Bullish

Gilt prices opened 10-12 paise higher compared with yesterday's close. Expect good appetite for the forthcoming auction of government borrowing programme.

Traders expect the Rs 10,000 crore auction, slated for early next week, to be well bid.

The yield on the 8.07 per cent 11-year bond eased to 7.17 per cent.

Call rates closed steady at 5.50/5.60 per cent levels today.

The RBI mopped up bids worth Rs 120 crore through the morning reverse repo auction and absorbed bids worth Rs 3,590 crore under its second liquidity adjustment facility.

RBI infused Rs 420 crore through its second reverse repo auction at 6.25 per cent.