Call rates eased to 8.25 per cent in intra-day trades before closing at 8.50-8.57 on Thursday. Opening the day at 8.50-8.65 from its last close at 8.25 per cent, call rates went a bit tighter to 8.75 levels, but eased in later day trades to 8.25 per cent before closing at 8.50-8.57. "Call rates eased by close as most banks had covered ahead of reporting Friday over the past two days when most thought that rates would climb higher to 9 per cent level, but call rates are ruling at current levels because of the in excess of notified amounts outflows on account of oversubscription to the 10-year 12.25 per cent state loan paper" dealers said. Against a notified amount of Rs 3,440 crore, the state-loan auction mopped up Rs 6,933.15 crore, an oversubscribtion by 101.5 per cent.

FORECAST: Call rates seen at 8 per cent levels on Friday.

Spot dollar

The rupee quoted in a 19 paise band on Thursday in volatile trades. Opening the day at 42.82/84 from its last close at 42.79/82,the rupee went to an intra-day of 42.67 on Monday. "The rupee opened lower and went to an intra-day high of 42.87 on worries over the passing of the Finance Bill. In later day trades, the rupee gained to its day's high as news of the Finance Bill came through", dealers said. Towards fag end of the day, dollar interest saw the rupee close lower at 42.74/75. Cash/spot went at 1.75/22.25 paise (1/1.50 paise) while cash/tom went at 0.25/0.50 paise (0.50/0.75 paise) and tom/spot 1.75/2 paise (0.50/0.75 paise). The Reserve Bank of India fixed its reference rate for the dollar at 42.74 (42.71). Elsewhere, the Euro opened stronger at 45.34 (45.34) against the rupee, went to an intra-day high 45.14 (of 45.47) to finally settle at 45.20 (45.32).

FORECAST: Rupee seen quoting at 42.75-45.80 levels on Friday.

Forward premiums

Forwards premiums softended by 2 to 3 paise on Monday by close of trades. "Trades were dull. There was hardly an corporates trades. Most of them were inter-bank", dealers said. Inthe near terms, April premiums closed at 2/3 paise (4/5 paise) with May at 22/23 paise (26/27 paise), and June at 45/46 paise (48/49 paise). "Premiums opened higher and there was some covering by banks in early trades, but they came off with call rates doing likewise", dealers said. The six-month annualised forward premium closed at 6.45 per cent (6.5 per cent). November premiums finished at 172/175 paise (176/177 paise), December at 202/204 paise (207/210 paise), January 231/233 paise (236/239 paise) with February at 256/258 paise (262/265 paise).

FORECAST: Six-month annualised forward premium seen at 6.40-6.50 per cent levels on Friday.

Gilts

Bond prices rallied by 4 to 5 paise on Thursday. "Bond prices recovered from their early levels as call rates eased off, and head of a Reporting Friday softening in rates", a dealer with a US-based bank said. The 12.50 per cent 2004 closed at Rs 104.24 (104-104.17), but was dealt up to Rs 104.27 levels. The 11.99 per cent 2009 was seen going higherat Rs 100.34 levels (Rs 100.30) in early trades, but fell to Rs 101.34. The 11.55 per cent 2001 closed a shade higher at Rs 101.21 (101.19) while few trades were seen in the 11.50 per cent 2004 at Rs 100.35. The 11.40 per cent 2000 quoted higher at Rs 100.91 levels (Rs 100.87).

FORECAST: Bond prices seen going firmer on Friday.