Spot dollar
The rupee ruled steady on Monday in dull trades. Opening the day at 43.57/58 from its weekend's close at 43.575/58, the rupee was seen in a fine two paise band throughout the day. "There was hardly any pressure on the rupee. The SBI reportdely bought dollars in noon trades, but there was enough dollar supplies to take of the demand", a dealer with a US-based bank said. At close, the rupee was seen softer at 43.56/57. Cash/spot was quoted at 1/1.25 paise, with both cash/tom and tom/cash at 0.50/0.6250 paise. FIIs' net investments in equities stood at $86.3 million in the first two days of March and totalled $619.8 million in February. Forex reserves rose to $35.595 billion on

February 25, 2000 from $35.193 billion in the previous week, the RBI said in its weekly statistical supplement on Saturday. "There is hardly any market moving factors... additional inflow of dollars will be mopped up by the RBI or by the SBI", a dealer with a US-based bank said.
FORECAST: The rupee seen steady at 43.58 levels on Tuesday.

Forward premiums
Forward premiums declined a bit on Monday. The six-month annualised forward premium ended at 3.42 per cent compared with Friday's 3.28 per cent. "In the forwards, paying pressure reduced... there was more of profit-taking on received positions as the market reconciled to interest rates remaining at current levels", dealers said. Traders feel that the interest rates will not be cut in the current fiscal. The receiving has stopped completely, but there is not much paying either," a dealer with a PSU bank said. March dollars ended at 15/16 paise, April at 28/30 paise, while August closed at 70/71 paise and September at 81/83 paise. The RBI deputy governor, YV Reddy, at the weekend assured markets that both this year's additional government borrowing until March and next year's requirements will be done smoothly.
FORECAST: Premiums seen holding steady on Tuesday.

Gilts
Bond prices fell in early trades, but gained by close on Monday. The 11.83 per cent 2014 was dealt at Rs 106 in noon trades on Monday, off morning's lows of Rs 105.70, but lower than Friday evening's levels of Rs 106.50."Firmer call rates at 11 per cent levels affected bond prices in early trades, but better fund supplies saw prices recovering", a dealer with a primary dealership said. About Rs 6,000 crore of towards the Reserve Bank's open market operations over the past three weeks has hit liquidity in the call money market. "Assurances from the Reserve Bank over the weekend that the additional government borrowing programme for 1999/2000 (April-March) will go through smoothly has extended comfort to sentiment", dealers said.
FORECAST: Bond prices seen lower on Monday.

-- (Compiled by Raghu Mohan)