The overnight call money market witnessed a fairly steady trend on Wednesday.

The call rates hovered around 6-6.05 per cent for most part of the day owing to ample loose liquidity in the system to meet borrowers' requirements.

"Fresh inflows due to reversal of repos conducted last week and redemptions of coupons have placed liquidity in a comfortable position," said a dealer from a nationalised bank.

The corresponding demand for funds was also limited as most banks had already covered their positions ahead of the reporting Friday on June 5. The Securities Trading Corporation of India turnover amounted to Rs 1,400 crore at a weighted average rate of 6.01 per cent.

The market ended on a squarish note, dealers said.

FORECAST: The call rates are likely to rule at Wednesday's levels on Thursday.

Spot Dollar

The inter-bank forex market continued to be listless on Wednesday.

The rupee opened at 41.79 against the dollar, compared with its previous close of 41.77. Inlater trades, the rupee weakened to 41.80, which was also the dollar's high for the day.

"Corporate demand for the greenback was normal... the sentiment was calm and there was no panic," dealers said.

At 41.80, the State Bank of India sold dollars.

Dealers said that the State Bank quoted 40.79/80 for the greenback, which prevented the rupee from weakening further. The dollar's low for the day was 41.76. At close, the rupee had recovered to 41.78.

Elsewhere, the Reserve Bank of India fixed its reference rate for the greenback at 41.80, unchanged from its previous peg.

FORECAST: The rupee is seen at Wednesday's levels on Thursday.

Forward Premiums

The six-month annualised forward cover ended at 8.80 per cent on Wednesday, compared with its previous close of 8.68.

Dealers said that there was a little corporate paying pressure both in the near and far terms. Few exporters were also seen receiving in the near forwards, but inflows were good with premiums now at attractivelevels.

July dollars closed at 17/20 paise, August at 82/85 paise, September at 113/116 paise and October at 142/150 paise. In the far forwards, January premiums closed at 248/253 paise, February at 277/282 paise and March at 310/315 paise.

"There was enough supply of dollars... call rates also ruled below 6 per cent levels," dealers said.

FORECAST: The six-month annualised forward cover is seen at 8.90 per cent on Thursday.

Gilts

The prices in the government securities market remained stable on Wednesday owing to lack of activity. "The market was dull as hardly any transactions took place," said a dealer from a private sector bank. The market witnessed some selling pressure, dealers said.

The wholesale debt market of the NSE witnessed trading worth Rs 313.37 crore. The 11.75 per cent government loan maturing in 2006 was traded for Rs 29 crore at a weighted yield of 11.95 per cent. The 13.65 per cent government loan maturing in 1999 was traded for Rs 20 crore at a weighted yield of10.26 per cent. The 14-day treasury bills maturing on June 13 were traded for Rs 41 crore at a weighted yield of 6.29 per cent.

FORECAST: The prices in the government securities market are likely to remain stable on Thursday.