The overnight call money market ruled easy on Friday. The call rates opened at 6 per cent, little changed from their previous close of 6-6.10 per cent. Though Friday is the reporting day, the short-term loan rates hovered around the repo rate for most part of the day on good demand for funds from corporates and banks. The rates opened at 6 per cent and ruled in the same range till mid-session and closed at 5.25-5.75 per cent.

There was enough supply to match the demand, dealers said. The Securities Trading Corporation of India registered a turnover of Rs 1,500 crore at a weighted average of 5.31 per cent.

Most deals were struck at 5.75-6 per cent. The Discount Finance House of India injected Rs 1,500 crore into the system, said dealers.

FORECAST: The call rates are likely to open at a 6-6.50 per cent on Saturday.

Spot Dollar

The six-month annualised forward cover remained steady at 8.30 per cent on Friday, marginally higher than the previous close of 8.25 per cent.The premiums rose by 5 paise initially as the spot rupee hit a new low. "There was paying pressure from importers when the spot rupee weakened," a dealer in a private bank said. The spot rupee weakened on month-end demand for the dollar and closed at 40.65/67.

The forward premiums, however, fell by 10 paise as exporters entered with dollars. "They brought in enough dollars to take care of the supply," a dealer said.

The fall in the premiums was accompanied by a similar rise in the spot rupee.

The six-month annualised forward cover touched a high of 8.50 per cent on Friday before closing at 8.30 per cent.

FORECAST: The six-month annualised cover is seen at 8.3-8.5 per cent levels on Monday.

Forward Premiums

The six-month annualised forward cover remained steady at 8.30 per cent on Friday, marginally higher than the previous close of 8.25 per cent. The premiums rose by 5 paise initially as the spot rupee hit a new low. "There was paying pressure from importers when the spot rupeeweakened," a dealer in a private bank said.

The spot rupee weakened on month-end demand for the dollar and closed at 40.65/67. The forward premiums, however, fell by 10 paise as exporters entered with dollars. "They brought in enough dollars to take care of the supply," a dealer said.

The fall in the premiums was accompanied by a similar rise in the spot rupee.

The six-month annualised forward cover touched a high of 8.50 per cent on Friday before closing at 8.30 per cent.

FORECAST: The six-month annualised cover is seen at 8.3-8.5 per cent levels on Monday.

Gilts

Following the announcement of the nine-year paper auction, the prices in the government securities market registered a fall of 40-50 paise on Friday morning. However, by the afternoon, they rose a little. Hectic activity was seen in the 2007 government loan at a coupon of 13.05 per cent. Almost all banks were seen trading in the nine-year paper in the secondary market. The security is offering a yield of 12.10 per cent.Some foreign banks were also seen buying short-dated treasury bills and government securities maturing in 1999 and 2000, said dealers.

The wholesale debt market of the NSE witnessed trading worth Rs 203.59 crore. The 11.50 per cent government loan maturing in 2004 was traded for Rs 40 crore at a weighted yield of 11.79 per cent. The 13.65 per cent government loan maturing in 1999 was traded for Rs 30 crore at a weighted yield of 10.18 per cent.

FORECAST: The prices in the government securities are expected to stabilise on Saturday.