Call rates hovered in the 8-8.10 per cent band on Monday. Opening at the day at 8-8.10 per cent levels, call rates went to an intra-day high of 8.20 per cent. Later, it was seen briefly at a low of 7.90 per cent thereabouts before finishing the day slightly firmer at 8-8.10 per cent. "Demand for funds was on the dull side...few were seen actively borrowing", a dealer at a Gulf-based bank said. At the Reserve Bank 3-day 6 per cent fixed rate repos held today, two bids for Rs 530-crore were accepted. Elsewhere, the National Stock Exchange's overnight Mibid and Mibor were pegged at 7.95 per cent and 8.10 per cent with quotes on the 14-day ones at 8.37 per cent and 9.17 per cent.

FORECAST: Call rates seen in the 8-8.15 per cent range on Tuesday.

Spot Dollar

The rupee held firm against the dollar at 42.43/44 on Monday. Opening the day after a string of intervening holidays at 42.43/44, the rupee remained rangebound on poor demand for dollars. "The rupee wasseen at these levels till mid-session. Trades were nominal...rupee was steady against the dollar throughout the day despite the political tension", dealers said. After hitting an intra-day low of 42.45, the rupee had gained by close of trades to 42.4325/4375. "Trades are dull and are expected to be so right up to the Reserve Bank's monetary and credit policy to be announced soon", a dealer at a brokerage said. Cash/spot went at 0.50/1 paise, cash/tom and tom/spot at 0.25/0.50 paise.

The Reserve Bank of India pegged its reference rate for the dollar at 42.44, a paise lower from last Wednesday's 42.43. Meanwhile, the Euro opened at 45.51 against the rupee, went to an intra-day high of 45.72 before finishing at 45.70.

FORECAST: Rupee seen at 42.43/45 levels on Tuesday.

Forward Premiums

Forward premiums opened 2-3 paise higher from their last Wednesday's closings before going softer by almost the same margin by close of trades. "There was hardly any demand for forward dollars. Pressure onthe forward dollar eased by afternoon and they recovered from an early rise. Exporters are not booking as they find current levels unattractive", Kanji Pitamber & Co's partner, Gautam Ashra, said.

The six-month annualised forward premium was seen in early trades at 6.73 per cent, but went softer at 6.68 per cent when it closed. In the near terms, July dollars was seen at 88/89 paise levels in initial trades, but closed at 84/86 paise. In the far terms, November premiums closed at 190/192 paise, December at 220/222 paise with January at 249/250 paise.

FORECAST: The six-month annualised forward cover seen at 6.69-6.75 per cent thereabouts on Tuesday.

Gilts

Bond prices went higher by almost 8-15 paise on Monday. "Bond prices rose in reaction to the lower than secondary market yields set by the Reserve Bank in its open market sale list on Saturday", a dealer with a UK-based bank said. The 11.40 per cent 2000 was dealt at Rs 100.90, up from Saturday's levels of Rs 100.82-100.85 while the11.55 per cent 2001 was dealt at Rs 101.00, higher from the weekend's Rs 100.90-100.95. The 12.50 per cent 2004 also went higher at Rs 103.90 from last Wednesday's levels of 103.65. The 11.98 per cent 2004 was dealt up to 101.95 though most of the deals were struck between Rs 101.88 and Rs 101.93. The 91-day T-bill maturing on May 22 was seen trading at a yield to maturity of 8.60 per cent.

FORECAST: Bond prices seen dipping a bit on Tuesday from current levels.