FORECAST: Call rates seen ranged between 7.95 per cent and 8.10 per cent levels on Saturday.

SPOT DOLLAR

The rupee weakened to an intra-day low of 43.2650/2750 against the dollar on Friday. Opening the day at 43.2450/2550, weaker from its overnight close at 43.21/22, the rupee went lower to its intra-day low 43.2650/2750 on short-covering by banks. "A few private and foreign owned-banks who had apparently gone short on the dollar were seen covering their positions", a dealer with a European bank said, adding: "There was not much corporate interest for dollars for most part of the day today. The rupee would have finished stronger from its day's low of 43.2650/2750, but there was a bit of dollar interest from corporates towards close of trades". Cash/tom was quoted at 1/1.25 paise (0.25/0.50 paise), cash/spot unchanged at1.50/1.75 paise (1.50/1.75 paise) with tom/spot at 0.25/0.50 paise (1.25/1.50 paise). The Reserve Bank maintained its reference rate for the dollar at 43.26. The euro, meanwhile, opened at 45.32 (45.29) against the rupee, went to a high of 45.65 (45.57) before closing at 45.43 (45.43).

FORECAST: Rupee seen ranged between 43.24 and 43.27 levels on Monday.

FORWARDS:

Forward premiums across the board went up a shade on Friday. "The receiving trend of the last few days was reversed. Premiums firmed up today as hopes of a cut in the bank rate or cash reserve ratio (CRR) has started to recede", a dealer with a brokerage said. The one-month annualised forward cover was seen at 3.80 per cent (3.76 per cent), three-months at 3.90 per cent (3.87 per cent) and six-months at 4.28 per cent (4.27 per cent). "There was good demand for forward dollars. Paying pressure was seen as those with dollars sat on the sidelines", dealers said, adding: "The upward movement in premiums was more in the far terms".February premiums quoted at 108/110 paise (106/108 paise), March 125/128 paise (123/125 paise) and April at 143/146 paise (140/143 paise). In the near terms, August dollars held steady at 15/16 paise (14/15 paise) with September at 29/30 paise (30/31 paise).

FORECAST: Six-month annualised forward cover seen quoting at 4.30 per cent on Monday.

GILTS

Bond prices quoted higher in early trades on Friday, but fell by close. The 11.55 per cent 2001 was dealt at Rs 101.47 at start of trades (Rs 101.44-101.48) while the 12.50 per cent 2004 was up at Rs 104.55 (Rs 104.52). The 11.75 per cent 2001 was dealt at Rs 101.91 (Rs 101.83-101.87). "Short maturities was up by three to five paise with a perk up of 10 to 15 paise in longer-dated papers", a dealer with a securities firm said, adding: "However, in later day trades, bond prices fell. Traders got around to the view that the Reserve Bank may not cut the bank rates or cash reserve ratio". The 11.98 per cent 2004 was dealt at rs 102.72 from itsearlier Rs 102.78 levels with the 11.55 per cent 2001 at Rs 101.44 from Rs 101.49.

FORECAST: Bond prices seen firming a shade in intra-day trades on Saturday.