Spot Re sheds 7 paise

MARKETS REPORT

Sentiment: Bearish

In a volatile trade, the rupee closed at 44.35 a dollar today from yesterday's close of 44.42.

In forwards, premiums shot up by almost 20-35 basis points on account of paying pressure. The six-month premium closed at 2.28 per cent and the 12-month premium ended at 1.65 per cent.

Money market

Sentiment: Bearish

Prices of short-tenure gilts moved in a tight range with a bearish undertone.

The 8.07 per cent 2017 gilt weakened to 7.22 per cent today from the previous close of 7.20 per cent.

Call rates closed at 6.40 per cent owing to lack of demand by banks ahead of reporting Friday.

Dealers expect the call rates to touch 7:00 per cent levels tomorrow on account of reporting Friday.

The RBI mopped up Rs 10 crore through the morning reverse repo auction and infused Rs 9,985 crore into the banking system.

RBI infused Rs 4,440 crore through its second reverse repo auction at 6.25 per cent, while the reverse repo bids aggregated to Rs 210 crore.