Overnight call money rates closed steady at 9.00-9.10 per cent in a squarish inter-bank market on Wednesday. Opening steady at 9.00-9.10 per cent, call rates moved in a range of 8.95-9.20 per cent during the day before closing at 9.00-9.10 per cent (8.90-9.10 per cent).

Most of the deals were struck between 9.00 per cent and 9.10 per cent levels, dealers said. "Liquidity in the system continued to be comfortable, but good demand for funds from some participants resulted the call rates ruling well over the repo rate of 8 per cent," a dealer at a private-owned bank said. The Reserve Bank of India accepted one bid for Rs 140 crore at the three-day 8 per cent fixed rate repos held here today. The the National Stock Exchange (NSE) Mibid and Mibor for overnight funds quoted at 8.99 per cent and 9.13 per cent respectively.

FORECAST: Call rates are expected to hover around 8-9 per cent levels on Thursday.

Spot dollar

The rupee held firm against the dollar in dull trades onWednesday.

Opening the day at 42.44/45, close to overnight close, the local currency quoted in a thin 2 paise band between 42.45 and 42.47 levels for most of the day.

"A bit of demand for dollars saw the rupee quote briefly at its intra-day low of 42.50/51.

But corporates selling pressure coupled with profit booking saw the rupee gain to close at 42.44/45 thereabouts," a dealer at a brokerage said. Cash/spot and cash/tom dealt unchanged at 1/1.25 paise with cash/tom at 0.50/0.75 paise. Elsewhere, the Reserve Bank pegged its reference rate for the dollar unchanged at 42.44. The rupee opened at 47.96 (47.99) against the Euro before closing at 48.03 (48.02).

FORECAST: Rupee seen ranged between 42.45 and 42.53 on Thursday.

Forward premiums

Forward premiums held their overnight levels for most of the day, but paying pressure took them slightly higher towards the close of trades. The six-month annualised forward cover closed at 7 per cent levels as against Tuesday's 6.90 percent.

"There was a bit of importer interest today as also profit taking," a dealer at a Gulf-based bank said.

March dollars closed at 32/35 paise (30/33 paise) with April at 61/63 paise (58/60 paise). In the far-forwards, August dollars closed at 163/166 paise (161/163 paise), September at 192/194 paise (188/190 paise), October at 218/220 paise (213/216 paise) and November at 246/249 paise (241/244 paise).

FORECAST: Six-month annualised cover seen holding closer at 7 per cent levels on Thursday.

Gilts

The government securities market was lacklustre on Wednesday but prices of short-term securities fell by 2-3 paise.

The wholesale debt market witnessed trades worth Rs 307.97 crore.

The 11.68 per cent government security maturing in 22002 was traded for Rs 35 crore at a weighted yield of 11.61 per cent. The 11.55 cent government loan maturing in 2001 was traded for Rs 35 crore at a weighted yield of 11.41 per cent. The 364-day treasury bill maturing on January 28, 2000 was traded forRs 30 crore at a weighted yield of 10.42 per cent. "The action was concentrated in the short-term securities as call rates were ruling easy and there were inflows into the system today," a dealer at a PD said.

Forecast: The action is expected to remain in short- and medium-term securities on Thursday.