CALL

The interbank call rate opened on Friday at 7.75-8.00 per cent and dipped slightly to close at 7.0-7.5 per cent, dealers said.

The call rate on Thursday traded between 7.5 and 8.0 per cent. Friday deals were mostly between 7.25 and 7.75 per cent. Deals at 8.0 per cent were few, dealers said.

The highest traded level was at 8.05 per cent but the rates didn't sustain at that level. ``We tried to lend our funds at 8.0-8.05 per cent, but there were no takers at those levels,'' a dealer at a state-owned bank said.

Three-day deals were concluded at 7.25-7.75 per cent because major lenders like financial institutions are closed on Saturday. The call rate is expected to soften next week, dealers said. Most expect the call rate to hover around 6 per cent levels, on Monday.

Saturday, the call rate is seen moving in a 7-8 per cent band. Saturday's rate is, however, not indicative of the market trend because major lending financial institutions are closed for weekend.FOREX

The rupee opened on Friday between 35.8250 and 35.8350 to a dollar compared with the previous day's opening of 35.8200-35.8250.

The domestic currency strengthened from the opening in early trading as a few banks sold the US currency, dealers said. The rupee firmed to 35.8175-35.8225 to a dollar, they said. State Bank of India and a few foreign-owned banks were said to have sold dollars on behalf of their corporate clients, they added.

However, the surge in the rupee was arrested as the Reserve Bank of India stepped in and sold dollars, a dealer at a private-owned bank said. The rupee weakened to 35.8350 levels, he added. The RBI's dollar purchases were between 12.00 pm and 1.00 pm, dealers said. The rupee, however, did not sustain at that level and closed firmer at 35.8050-35.8100 as banks began selling dollars.

State Bank was said to have taken the lead toward closing and sold dollars shortly before closing of trading hours. The selling was supported by a few exporters and the rupee touched the day's high of 35.8050.

on Thursday, the rupee closed at 35.82 to a dollar.FORWARD PREMIA

Premiums in far-forward dollar deliveries opened firmer from the previous day's closing on buying interest by a few corporates, dealers said.

The buying interest was seen in months beyond September, they said. The premiums stabilised after the initial spurt, but toward close, premiums dipped as State Bank and a few foreign-owned banks sold far-forward dollars. The selling pushed down premiums by 2-3 paise, dealers said. September-end delivery dollars closed at 58 paise over the spot rate compared with 60 paise in early trades. Similarly, October-end premiums closed at 74 paise compared with 77 paise at the opening. Six-month dollar deliveries ended at 4.59 per cent over the spot rate from the opening level of 4.65 per cent. The six month premium on Thursday was 4.68 per cent. The premiums are expected to dip further next week as domestic interest rates (overnight) are seen softer from the current levels of 7-8 per cent, dealers said. The domestic interest rates have a bearing on the near-term swaps which in turn will have an effect in long-term swaps too. And with the domestic interest rates expected to settle around six per cent levels next week, most dealers are expecting the six month premiums to slip to 4.25-4.50 per cent.GILTS

Activity in the government securities market on Friday was restricted to near and medium term maturing bonds. Volumes at the exchange were higher at Rs 284 crore from the previous day's Rs 224 crore. There was good selling interest in treasury bills maturing from January onward. However, deals were few as buyers bargained for higher yields, dealers said.

Deals in treasury bills totalled Rs 70 crore. Yields in most of the treasury bills were nearly stagnant at their previous levels, dealers said. Prices in near and medium term bonds were also stable, dealers said.

At the weekly 91-day treasury bills auction held on Friday, the Reserve Bank of India hiked the cut-off yield to 6.77 per cent from the previous week's 6.23 per cent. The cut-off rate at which bids were accepted was Rs 98.34. There was no devolvement on the RBI or primary market dealers and the entire issue of Rs 150 crore was subscribed. Meanwhile, the RBI received no bids at the four-day repo auction of government securities held on Friday.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.