The Reserve Bank of India mopped up Rs 2,000 crore through 8 per cent fixed-rate repos. About Rs 1,000 crore entered the system through the RBI reverse repo.

FORECAST: Call rates are seen at 8-8.50 per cent on Wednesday.

Spot Dollar
The rupeemoved in a narrow 3 paise range on Monday owing to dull trading. The Indian currency opened at 42.50/51 against the dollar, 1 paise higher than its previous opening levels. Throughout the day, lacklustre trading saw the rupee move in a narrow range of 42.50/52. The rupee finally closed at its opening level of 42.50/51. "At present, the forex market is not witnessing any substantial demand by either exporters or importers. Lacklustre demand is keeping the rupee rangebound," said a forex dealer with a foreign bank.

The RBI reference rate for the dollar was Rs 42.51, unchanged from its previous peg.

The euro remained stable against the dollar owing to lacklustre trading in the new currency. The rupee opened at 49.09 against the euro, recorded an intra-day high of 49.34, fell to a low of 49.09 and finally closed at 49.19.

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

Forward Premiums
Forward premiums opened at their previous closing levels on Monday. However premiums firmed upby 2-3 paise owing to slightly higher paying by corporates in three-month and six-month premiums. "A lot of paying interest is seen in medium-term premiums," said forex dealers. Six-month annualised premium closed at 7 per cent, three months at 7 per cent and one month at 5.10 per cent.

January premium closed at 0.25-0.50 paise (1-3 paise), February at 19-24 paise (19-22 paise), March at 44-48 paise (43-47 paise), April at 73-77 paise (72-76 paise), May at 95-98 paise (94-97 paise), June at 120-124 paise (118-122 paise), July at 149-153 paise (147-151 paise), August at 179-182 paise (177-181 paise), September at 206-210 paise (204-208 paise), October at 235-239 paise (233-238 paise), November at 265-269 paise (263-268 paise) and December at 295-298 paise (293-295 paise).

FORECAST: Six-month annualised cover is seen at 6.90-7.2 per cent on Wednesday.

Gilts
Prices of short-term government securities firmed up by 3-4 paise on Monday owing to easy call rates. Gilt prices shot up by 3-4paise after overnight rates eased to 8-8.25 per cent. "A lot of selling pressure was witnessed in the market on Monday," said a dealer. 11.40 per cent 2000 paper traded at Rs 100.24 compared with its previous close of Rs 100.19. 11.55 per cent 2001 paper traded at Rs 100.23 compared with its previous close of Rs 100.18. Zero coupon 2000 paper maturing on July 13 traded at Rs 85.39. 11.68 per cent 2002 paper traded at Rs 100.18. 11.64 per cent 2000 paper traded at Rs 100.62. The wholesale debt market of the NSE witnessed trades worth Rs 369.46 crore. 11.68 per cent government loan maturing in 2002 traded worth Rs 50 crore at a weighted yield of 11.60 per cent. 11.75 per cent converted government stock maturing in 2001 traded worth Rs 35 crore at a weighted yield of 11.44 per cent.

FORECAST: Gilt prices are seen stable on Wednesday.