The overnight call money rates remained easy on Monday. The rates opened at 6 per cent and closed at the same level as against the previous close of 6-6.50 per cent.

According to dealers, the comfortable liquidity position in the market has brought down the call rates to the 6 per cent repos level.

"The liquidity position in the system is good and the total repos outstanding amounts to Rs 8,000 crore," said a dealer from a nationalised bank.

However, according to dealers, the call market witnessed little activity. "Most traders were not very active in the market as some of them had taken a position earlier whereas the rest of them were waiting for the budget announcement," dealers said. Throughout the previous week, the call rates remained stable and moved in the 6-7 per cent band.

FORECAST: The call money rates are likely to hover around 6-7.50 per cent on Tuesday.

Spot Dollar

The rupee slipped to an all-time low of 41.83 against the dollar on Monday.The rupeeopened at 41.68/73, compared with its previous close of 41.72/75, and soon was seen testing record lows.

"Corporate demand for the greenback in a thin market saw the rupee touch its historical low of 41.83 soon after the start of trades," a dealer with a British bank said.

Trades were dull, dealers said. "Most were waiting for budget announcements before taking a view," a dealer with a brokerage said. The State Bank of India reportedly extended support to the rupee. The dollars' high for the day was 41.83 while its low was 41.71. At close, the rupee was seen at 41.71 against the dollar.

Elsewhere, the Reserve Bank of India pegged its reference rate for the greenback at 41.79, compared with its previous peg of 41.50.

FORECAST: The rupee is seen in the 41.50-42 band on Tuesday.

Forward Premia

The six-month annualised forward cover ended at 8.7 per cent on Monday, compared with its previous close at 9.1 per cent. Forwards opened weaker, but rallied to close stronger by the close oftrades.

Dealers said that demand for forward dollars was weak ahead of the Union budget.

"There was hardly any good covering in the forwards... both importers and exporters chose to keep away, except for a few stray deals," a dealer with a brokerage said. In the near terms, June dollars finished at 21/23 paise, July at 52/59 paise, August at 83/85 paise, September at 115/118 paise and October at 146/150 paise. In the long terms, February dollars ended at 272/273 paise, March at 300/305 paise, April at 332/335 paise and May at 361/366 paise.

FORECAST: The six-month annualised forward cover is seen at 9-9.05 per cent on Tuesday.

Gilts

The prices in the government securities market moved up by 15-20 paise on Monday on expectations of positive announcements in the budget. According to dealers, little trading took place in the market.

The market was flat and only a few private sector banks were seen trading in government securities, dealers said. Almost all the nationalised and foreignbanks did not trade, they added. The prices remained at the morning level throughout the day. Most traders held on to their securities. Life Insurance Corporation was seen trading in the 2008 government loan, whereas some private banks were seen trading in short-dated securities like the government loan maturing in 1999 and 2000, among others.

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