Call rates opened at 8.75-9 per cent, a tad firmer than their previous close of 8.50 per cent, and later eased to close at 8-8.10 per cent owing to little demand for funds. Most deals were struck at 8.05-8.25 per cent.

The Reserve Bank of India mopped up Rs 4,165 crore through four-day 8 per cent fixed-rate repos.

"There appears to be enough liquidity in the system... Resurgent India Bonds proceeds were disbursed to banks on Thursday. This is expected to offset advance tax outflows," said Standard Chartered Bank chief forex dealer Sharukh Wadia.

The total turnover of the Security Trading Corporation of India was Rs 1,000 crore. The National Stock Exchange's Mibid was pegged at 8.07 per cent and Mibor at 8.29 per cent.

FORECAST: Call rates are seen in the 8.15-8.60 per cent band on Friday.

SPOT DOLLAR:

The rupee quoted in a 7 paise band between 42.46 and 42.53 on Thursday.

The Indian currencyopened at 42.49/50, compared with its previous close of 42.46/47, and touched an intra-day high of 42.46 owing to a lacklustre demand for dollars in a thin market. Towards the close of trades, the State Bank of India dollar-purchases saw the rupee close lower at 42.52/53.

"Trades were dull... The spotlight now seems to be on the upcoming credit policy, and most corporates appear to be cautious," said Mecklai Financial Services vice president Ravi Vasantraj.

Cash/spot quoted at 1.50/2.50 paise and cash/tom at 0.25/0.50 paise.

Elsewhere, the Reserve Bank of India pegged its reference rate for the dollar at 42.47 (42.49).

FORECAST: The rupee is seen between 42.45 and 42.53 on Friday.

FORWARD PREMIUMS: Forwards premiums fell across all maturities on Thursday.

"Paying interest was seen in the near terms, but they closed softer," said a dealer with Gulf-based bank.

September premiums ended 4/6 paise (7/9 paise), October at 30/33 paise (35/37 paise), November at 59/62 paise (63/66 paise)and December at 89/92 paise (93/96 paise). At the close, the one-month annualised forward cover quoted at 7.14 per cent (7.48 per cent).

In the far terms, March premiums finished at 181/185 paise (187/192 paise), April at 216/221 paise (222/227 paise) and May at 251/256 paise (256/261 paise). "A few exporters were seen receiving, but premiums softened, largely in the absence of any substantial paying interest in a thin market," dealers said. The six-month annualised forward cover ended at 8.31 per cent compared with its previous close of 8.53 per cent.

FORECAST: The six-month annualised forward cover is seen at 8.37-8.41 per cent on Friday.

GILTS:

The government securities market witnessed subdued trades on Thursday as interest was restricted to short-term papers.

The 11.64 per cent 2000 was dealt between Rs 100.47 and Rs 100.55 and the 11.55 per cent 2001 between Rs 99.92 and Rs 100.

The National Stock Exchange's wholesale debt segment registered trades worth Rs 81.85 crore (Rs 156crore). Both the 11.64 per cent 2000 and the zero coupon 2000 saw trades worth Rs 15 crore each at a weighted yield of 11.27 per cent and 11.36 per cent respectively. Moderate trading interest was also seen in Sterlite Ltd's commercial paper maturing on October 20, 1998.

FORECAST: Short-term gilt prices are seen a tad higher on Friday.