Rupee inches to 45.05/$

MARKETS REPORT

Outlook: The spot rupee is likely to open in the range of 45.00/02 to a dollar on Tuesday.

Sentiment: Bullish

• The spot rupee rose to 45.05 in thin trades after having opened at 45.11/13 in early trades
• Premium on the six-month forwards notched up to 1.7 per cent and the 12-month premium edged up to 1.2 per cent tracking domestic liquidity

Money market

Sentiment: Bearish

• The gilts market was steady in a rangebound trade despite severe cash crunch
• While yield on the nine-year government paper stood at 7 per cent, that on the 8.07 per cent 2017 paper was around 7.22 per cent
• Call rates soared to 7 per cent amid tight liquidity
• The government is sitting on huge cash supplies, which are exerting pressure on domestic liquidity, dealers said
• The RBI absorbed Rs 125 crore through its morning reverse repo auction at 5.25 per cent. It infused Rs 10,925 crore at 6.25 per cent