Call rates opened at 6-6.50 per cent, compared with their previous close of 7.75-8 per cent, and moved in a range of 5.50 per cent and 7.10 per cent.

Overnight rates closed at 5.50-6 per cent. There were stray deals around 5 per cent towards the close, but most deals were struck at 6-6.75 per cent, dealers said. Three-day money quoted at 7.90-8.05 per cent, they added.

Market was dull as borrowers had already covered their positions. Outflow from the RBI repos was Rs 416 crore.

The Discount and Finance House of India extended market support of over Rs 2,300 crore, a DFHI treasury manager said.

FORECAST: Call rates are seen above 8 per cent on Saturday.

Spot Dollar

Lacklustre trading on Friday saw the rupee hold firm against the dollar. The Indian currency opened at 42.54/55, unchanged from its previous close, and gained to 42.52/53 in the afternoon.

"The rupee barely moved and hovered around the opening level till noon... Activity in the market was very dull andthe lower dollar demand was met with scatterd offering," dealers said. At the close, the rupee quoted at 42.53/54.

"US military raids on Iraq had no impact on sentiments," dealers said. Cash/spot held steady at Thursday's 1.75-2.00 paise with cash/tom at 1.25-1.50 paise (0.25-0.50 paise). The Reserve Bank of India pegged its reference rate for the dollar at Rs 42.54, 1 paisa higher than its previous close.

FORECAST: The rupee is seen in the 42.53-42.57 band on Monday.

Forward Premiums

Premiums, both in the near and far terms, came off a bit on Friday owing to poor corporate demand for forward dollars and dull trading in the spot market.

"The six-month annualised premium quoted higher between 7.70 per cent and 7.75 per cent in early trading, but closed at 9.56 per cent, lower than Thursday's 7.72 per cent," dealers said. A few exporters were also seen receiving as premiums softened.

"Lower call rates on account of the reporting Friday also helped premiums gain," a dealer with aEuropean bank said. Call rates opened lower at 6-7.00 per cent and eased further to 6-6.50 per cent around the afternoon. January dollars quoted lower at 21/24 paise (24/27 paise), February 44/47 paise (48/52 paise), March 73/77 paise (78/82 paise). In far terms, April closed at 104/108 paise (110/115 paise), May 133/139 paise (140/145 paise) and June 165/169 paise (170/175 paise).

FORECAST: The six-month premium is seen at 7.64-7.67 per cent on Monday.

Gilts

The secondary market for government securities held steady in subdued trading on Friday. The bond market was dull, with few trades at the short end unlike the trend seen recently.

The wholesale debt market segment of the National Stock Exchange witnessed trades worth Rs 360.15 crore. The 12 per cent converted government security maturing in 1999 traded worth Rs 51 crore at a weighted yield of 10.27 per cent. The 11.68 per cent government security maturing in 2002 traded worth Rs 20 crore at a weighted yield of 11.63 per cent. Threerepo trades worth Rs 120 crore were transacted at repo rates ranging between 8.90 per cent and 9 per cent for repo terms of 11-14 days.

FORECAST: The secondary market for government securities is seen lacklustre on Monday.