Call money rates ended lower at 8.00-8.10 per cent today on account of Reporting Friday. Opening the day at 9.00-9.10 per cent levels despite being a Reporting Friday, good demand for funds was seen in the inter-bank market. "Unlike the usual Reporting Fridays, the market witnessed more activity and call rates ruled comparatively higher," dealers said.

Call rates ruled between 7.50 per cent and 9.10 per cent, before closing at 8.00-9.10 per cent. "Banks, who left their position uncovered expecting the call rates to ease at the end of the reporting fortnight, covered their positions today," dealers said adding: "Major lender, State Bank of India absence resulted in a slight tightening of liquidity in the market".

The Reserve Bank accepted a single bid for Rs 93 crores at the four-day 8 per cent fixed-rate repos held here today.

Forecast: Call rates are expected to remain at 9 per cent levels on Saturday.

Spot Dollar

Dull trades saw the rupee hold firm against thedollar and quote in a two-paise band on Friday. Opening the day at 42.45/46, almost unchanged from its overnight close, the rupee went to an intra-day high of 42.47/4750 before finishing the day at 42.44/45.

"Trades were next to nothing. In the run-up to the union budget, most corporates are playing it cautious", a dealer with a US-based bank said. Cash/spot went at 3/3.25 paise (3.50/4 paise) with cash/tom also going likewise. Elsewhere, the Reserve Bank of India pegged its reference rate for the dollar at 42.45 as against its Thursday's fix of 42.46.

Meanwhile, the rupee opened stronger against Euro in opening trades at 46.61 (48.05) before closing lower at 47.72 (48.04).

Forecast: Rupee seen between 42.43 and 42.57 on Monday.

Forward Premiums

Forward premiums across the board softened by 4 to 5 paise on Friday. The six-month annualised forward cover closed at 7 per cent thereabouts from its overnight quote at 7.33 per cent. "Premiums softened reversing the trend of last couple ofdays. A few banks and corporates booked profits. There was also some amount of receiving," dealer said. Premiums had been going higher with tighter call rates at 8.90-9 per cent levels and paying pressure. Far forwards came off their Thursday's closings to finish lower today. October dollars ended at 214/217 paise (219/222 paise), November 243/246 paise (248/251 paise) with December at 272/275 paise (305/308 paise).

Forecast: Six-month annualised premiums seen holding 7 per cent levels on Monday.

Gilts

Trading in the debt market was confined to the short and medium term securities. A few deals were struck in the commercial papers (CP) also.

In the wholesale debt market segment of the National Stock Exchange (NSE), deals worth Rs 226.59 crore were struck. The 11.15 per cent 2002 saw trades worth Rs 35 crore at a weighted yield of 11.64 per cent. The 11.40 per cent 2000 saw trades worth Rs 25 crore at a weighted yield of 11.24 per cent with those in the 11.98 per cent 2004 at Rs 15 croreat a weighted yield of 11.93 per cent.

Among the CPs, trades were seen in the Nirma paper maturing on March 30 at an yield of 10.15 per cent. CPs issued by Ranbaxy maturing on April 20 was traded saw trades worth Rs 10 crore at 10.65 per cent.

Forecast: Trading is expected to remain confined to short-term securities on Saturday.