Call money
Call rates held firm at 14 per cent levels on Monday. Opening the day at 13-14per cent , a shade lower from its weekend's close at 14-15 per cent, call rates hovered at 13.75-14.50 per cent thereabouts on moderate demand for funds coupled with comfortable supply. "Trades were squarish... it is the early part of a new fortnight, and the demand-supply position was evenly matched", a dealer with a European bank said. Most of the deals were struck at around 14 per cent levels. The Reserve Bank accepted 14 applications for Rs 1,075 crore at 14.50 per cent at its two-day repos auction and 25 applications for Rs 1,265 crore at four-day repos at 15 per cent. At close, call rates were seen at 14.14.25 per cent. Elsewhere, the Reserve Bank pegged its overnight Mibid and Mibor at 14.05 per cent and 14.57 per cent respectively.
FORECAST: Call rates seen at 14-14.50 per cent levels on Tuesday.Spot dollar
The rupee rallied to close at 45.72/74 against the dollar on Monday. Opening the day at 45.72/75 from its overnight close at 45.80/83, it wast lower on good dollar demand to an intra-day low of 45.93/94. The RBI's move to scale down balances in EEFC accounts as on August 11 to 50% by August 23 saw the rupee recover to closer nearer to its opening levels. The RBI added that future accretions will be permitted only up to 50% of what eligible, and that the same must be held in liquid form in current/savings accounts. Credit facilities against EEFC accounts are to be held in abeyence until the new orders are complied with. "Their will be nearly $1 billion in inflows by August 23... the rupee will gain now", a dealer said. On Friday, the rupee was 45.07 prompting the RBI governor, , to give ordssers to corporates . Cash/tom quoted at 1.75/2 paise (3/4 paise), cash/spot at 2.5/3 paise (4/5 paise) with tom/spot at 0.75/1 paise (1.25/1.75 paise).
FORECAST: Rupee seen at 45.50-60 levels on Tuesday.
Forward premiums
Forward premiums quoted softer on Monday in line with a stronger spot-rupee by close of trades. The six-month annualised forward premium ended at an annualised 4.10% (4.35%). August dollars ended at 11/12 paise (14/15 paise), September at 26/27 paise (29/30 paise) with February at 99/100 paise (101/105 paise) and March at 112/114 paise (119/120 paise). "There was all-round receiving after the RBI statement", a dealer said. The RBI's move to scale down balances in EEFC accounts as on August 11 to 50% by August 23 saw the rupee recover to closer nearer to its opening levels. The central bank added that future accretions will be permitted only up to 50% of what eligible, and that the same must be held in liquid form in current/savings accounts. Credit facilities against EEFC accounts are to be held in abeyence until the new orders. RBI'S ruling on Friday for corporates saw the rupee recover to close at 45.80/83.
FORECAST: Premiums seen holding steady on Tuesday.
Gilts
Bond prices gained by close of trades on Friday. The 12.50 per cent 2004 was seen at 105.05 levels (Rs 104.80). The 11 per cent 2006 finished at Rs 100.01/02 levels (Rs 99.75). "Bond prices opened low, but gained after the Reserve Bank's statement and the subsequent gain in the spot-rupee", an analyst with a primary dealership said. The Reserve Bank's move to scale down balances in EEFC accounts as on August 11 to 50% by August 23 saw the rupee recover to closer nearer to its opening levels. The central bank added that future accretions will be permitted only up to 50 per cent of what eligible, and that the same must be held in liquid form in current/savings accounts. Credit facilities against EEFC accounts are to be held in abeyence until the new orders are coplied with.
FORECAST: Bond prices may gain a shade Tuesday.
-- (Compiled by Raghu Mohan)
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.