Call rates remained rangebound on Friday. Overnight rates ruled easy in a narrow 8.80-9 per cent band throughout the day owing to easy liquidity in the system. The inflow of Rs 3,000 crore into the system on Monday eased call rates to below 9 per cent compared with 35 per cent last week.

Call rates opened at 8.80-9 per cent, a tad easier than their previous opening level of 8.90-9 per cent. During the day, call rates firmed up by 10 basis points to 9.10 per cent owing to high demand for funds. "Some funds entered the system during the later part of the day owing to clearance of some high-value cheques which eased call rates towards the close," dealers said.

The rates finally closed at 8.80 per cent. The Reserve Bank of India on Monday mopped up Rs 1,000 crore through three-day 8 per cent fixed-rate repos.

FORECAST: Call rates are seen at 8-50-9.15 per cent on Saturday.

Spot Dollar

The rupee moved in a narrow 3 paise range on Friday owing to dull trading. The Indiancurrency opened at 42.51/52 against the dollar, unchanged from its previous close. The rupee moved in a narrow range of 42.50-42.52. "At present, no substantial demand by either exporters or importers is being witnessed in the forex market. Lacklustre demand is keeping the rupee rangebound," said a forex dealer from a foreign bank.

The rupee finally closed at 42.50. The Reserve Bank of India reference rate for the dollar was Rs 42.51, unchanged from the previous peg of Rs 42.52.

The euro remained stable against the dollar owing to lacklustre trading. The euro held at 1.16-1.1624 against the dollar throughout the day. The Indian currency opened at 49.21 against the euro, touched an intra-day high of 49.40, fell to a low of 49.21 and finally closed at 49.32.

FORECAST: The rupee is seen at 42.48-42.55 on Monday.

Forward Premiums

Forward premiums opened 1-3 paise lower than their previous closing level. During the day, premiums firmed up by 2-3 paise to finally close 2 paise lower than the day'shigh. According to dealers, marginally high paying by importers saw a slight upward movement in the forward premiums.

The six-month annualised closed at 7 per cent (6.92 per cent), three months at 6.85 per cent and one month at 6 per cent. January premium closed at 1-3 paise, February at 19-22 paise, March at 43-47 paise, April at 72-76 paise, May at 94-97 paise, June at 118-122 paise, July at 147-151 paise, August at 177-181 paise, September at 204-208 paise, October at 233-238 paise, November at 263-268 paise and December at 293-295 paise.

FORECAST: The six-month annualised cover is seen at 6.90-7.2 per cent on Monday.

Gilts

Prices of government securities remained rangebound on Friday. According to dealers, although some buying interest was seen in gilts, this was offset by supply as there were sellers at these levels. 11.55 per cent 2001 paper traded at Rs 100.20 (Rs 100.19) and 11.40 per cent 2000 paper at Rs 100.20.

The wholesale debt market of the NSE witnessed trades worth Rs 353.09crore. 11.40 per cent government loan maturing in 2000 traded worth Rs 68 crore at a weighted yield of 11.26 per cent. Zero coupon government bond maturing in 2000 traded worth Rs 20 crore at a weighted yield of 11.12 per cent. Zero coupon NCDs of Reliance Capital maturing in 2002 traded worth Rs 24 crore at a weighted yield of 15.77 per cent.

FORECAST: Gilts prices are seen stable on Saturday.