The call rates opened above the repo rate and hovered at the same level till the afternoon session. Later, they gradually fell to 4.00-5.00 per cent, dealers said. The Securities Trading Corporation of India's turnover was Rs 3,200 crore on a weighted average of 4.62 per cent. The Discount and Finance House of India injected Rs 1,800 crore into the system.

FORECAST: The call rates are likely to hover at 6 per cent level on Saturday.

Spot Dollar
The rupee held steady and remained rangebound against the dollar on Friday. It opened at 39.77, almost unchanged from its previous close of 39.78. Later it dipped to 39.79, which was also the dollar's high for the day.

"A fewwere seen bidding for the greenback. State Bank of India's dollar sales at 39.78 levels on Wednesday saw a few banks caught short," a dealer said.

On Wednesday, the rupee was expected to touch 39.80, but State Bank's dollar sales at 39.78 saw a few banks short.

Towards the close, the rupee recovered to 39.76. The dollar's low for the day was 39.76. The Reserve Bank of India maintained its reference rate for the dollar at 39.78.

FORECAST: The rupee is seen at 39.76-39.80 levels on Tuesday.

Forward Premiums
The six-month annualised forward cover closed weaker at 6.69 per cent on Friday, compared with its previous close of 6.24. Demand ahead of holidays saw forward premiums under pressure even though the call rates held at 5 per cent levels.

There was some paying pressure in the near forwards. May dollars finished weaker at 5/7 paise, compared with their previous close of 5/6 paise. June premiums ended at 20/22 paise (18/20 paise), July at 41/43 paise (38/40 paise) and August at 63/65paise (59/61 paise).A fair amount of export-import booking was done in near terms, dealers said. Long forwards also closed weaker by nearly 10-15 paise.

"There was some inter-bank squaring," a dealer with a British bank said. January dollars quoted at 206/211 paise, February at 232/236 paise and March at 261/236 paise.

FORECAST: The six-month cover is seen at 6.50 per cent levels on Tuesday.

Gilts
The government securities market witnessed selling pressure on Friday and most banks and primary dealers were seen selling new government loans in the market in order to subscribe to the six-year, Rs 4,000-crore government loan auctioned on Friday, dealers said.

The prices in the government securities market fell by 5-10 paise, dealers said.

The wholesale debt market of the NSE witnessed trading worth Rs 416.72crore.

The 12 per cent government loan maturing in 2008 was traded at a weighted yield of 11.89 per cent for Rs 80 crore. The 11.75 per cent government loan maturing in 2006 wastraded for Rs 50 crore at a weighted yield of 11.69per cent. Repo trade worth Rs 25 crore was transacted at 7 per cent for 14 days.

FORECAST: The prices in the government securities market are likely to go up on Saturday.