Call money
Call rates softened on Reporting Friday to close at 8.50-8.75%. Opening the day at 14-14.50% from its last close at 13-13.23%, it went to an intra-day high of 13.50 per cent. "Call rates eased in post-noon trades and ruled lower due to good inflow coupled with Reporting Friday... moved in the wide range between 8% to 14% throughout the day... most of the deals in the morning were struck at 8% and at 13% at noon", an analyst said. The cut-off at both the RBI's three-day repos and five-day repos stood at 14%. Total borrowings in the inter-bank market stood at Rs 17,350 crore (Rs 15,880 crore) with lendings at Rs 10,565 crore (Rs 8,814 crore). The liquidity support availed of from the RBI at 8% stood at Rs 13,726 crore (Rs 13,484 crore). "Call rates will be firmer , but the market is looking forward to the RBI Ways & Means figure", a dealer said.
FORECAST: Call rates seen firmer on Saturday.Spot dollar
The rupee dipped to a life-time low of 46.07 on Friday. Opening at 45.90/95 from its overnight close at 45.86, the rupee went lower on good dollar demand. It moved down further on short-term dollar covering by importers and registered a fall of about 19 paise to touch 46.0350-levels with all major corporates and foreign banks resorting to panic-buying. Said e-Mecklai's senior dealer, Sharad D Pawar: Till today's session, rupee lost by about 118 paise to 46.0350 from Rs 44.85/86 on July 27. Later, a statement by RBI governor, Jalan, that a few corporates have been asked to bring back external commercial borrowings, ADR proceeds and sell EEFC account holdings saw the rupee recover to close at 45.80/83. Cash/tom quoted at 3/4 paise (1/1.25 paise), cash/spot at 4/5 paise (3.5/4.5 paise) with tom/spot at 1.25/1.75 paise. (3/3.25 paise).
FORECAST: Rupee seen at 45.90 levels on Monday.
Forward premiums
Forward premiums quoted softer on Friday in line with a stronger spot-rupee by close of trades. The six-month annualised forward premium ended at an annualised 4.35% (4.77%). August dollars ended at 14/15 paise (17/18 paise), September at 29/30 paise (36/38 paise) with February at 103/105 paise (117/119 paise) and March at 119/120 paise (132/134 paise). RBI Governor Bimal Jalan, said that a few corporates have been asked to bring back external commercial borrowings, ADR proceeds, and sell EEFC account holdings saw the rupee recover to close at 45.80/83. The Reserve Bank, in order to stabilise the market, a day earlier, introduced the four-day and seven-day repos in addition to the one-day repo and three-day repos to suck excess liquidity in the banking system to arrest the fall in rupee.
FORECAST: Premiums seen holding steady on Monday.
Gilts
Bond prices gained by close of trades on Friday. The 12.50% 2004 was seen at 104.85 levels (Rs 104.40) after quoting at Rs 104.20 in early trades. The 11% 2006 finished at Rs 99.85 levels (Rs 99.20). The cut-off at both the Reserve Bank's three-day repos and five-day repos stood at 14%. "It was a reporting Friday, but trades were volatile... prices gained after the Reserve Bank governor's statement on the forex side", a dealer with a US-based bank said. Reserve Bank governor, Bimal Jalan, said that a few corporates have been asked to bring back external commercial borrowings, ADR proceeds and sell EEFC account holdings saw the rupee recover to close at 45.80/83. "I think bond prices will gain... all eyes are now on the RBI Ways & Means figure to be released on Saturday", an analyst said.
FORECAST: Bond prices seen gaining on Saturday.
-- (Compiled by Raghu Mohan)
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.