SPOT DOLLAR
The rupee ended firmer on Friday. Opening the day 43.51/5150, the rupee was seen in a narrow range and closed at 43.50/5050. The rupee had ended at 43.51/5150 on Thursday. Dealers said that trading volumes remained thin ahead of the year-end. "There was good supply of dollars though demand was nominal," a dealer with a state-run bank said. Dealers said that investments made by FIIs aided the firm trend in the rupee. "Large banks have also not been active in buying dollars, which aided the rupee's rise," a dealer with a forex brokerage said. FIIs have bought equities to the tune of $309.4 million during December as compared to $293.2 million in November. Cash/spot ended at 1/1.25 paise, tom/spot at 0.25/0.375 and cash/tom at 0.75/1 paise. The rupee ended at 70.37 to a pound sterling and 44.11 per euro.
FORECAST: Rupee seen at 43.49/5150 levels on Monday.

FORWARD PREMIUMS
Forward premiums ended lower on Friday the back of receiving by banks across all maturities. "There was receiving by one large state-run bank across all maturities and this softened premiums," a private bank dealer said. The six-month annualised forward premium closed on Friday at 3.98 per cent as compared to its overnight 4.07 per cent. "Easy call rates led to a softening of forward premia," a dealer with a state-run bank said. Call rates ended a shade lower at 7.75-8 per cent. In the near-end terms, December dollar ended at 0.25/0.75 paisa, January at 12/13 paise while in the far forwards, June ended at 87/88 paise with July at 100/102 paise. "Forwards closely tracked the spot rupee throughout the session... the downward movement can be attributed to good receiving by some large state-run banks," a dealer with a forex brokerage said.
FORECAST: Monthly premiums seen at lower levels on Monday.

GILTS
Bond prices rose moderately on Friday on sustained buying support. Dealers attributed the uptrend in prices of government securities to large inflows on account of bond redemption and coupon payments. Redemption of the 13.40 per cent 1999 on Friday brought in Rs 2,000 crore while coupon payments on the 13.40 per cent 1999 and 13.85 per cent 2006 saw inflows of Rs 134 crore and Rs 346 crore respectively. "The easing of call rates also aided the demand for bond paper. Call rates ended lower at 7.75-8 per cent. Dealers said buying interest was restricted to long dated bonds where prices rose by 10 to 12 paise. The 12.40 per cent 2013 ended at Rs 106.08 (Rs 105.91). The security was dealt at Rs 105.98 in morning trades. At close, the 12.32 per xent 2011 was seen at Rs 105.65 (Rs 105.52).
FORECAST:Bond prices expected to rally on Monday.

-- Compiled by Anurag Joshi