Spot dollar
The rupee fell a shade to an intra-day low of 45.94/96 before closing at 45.91/93. Openingat 45.68/69, from overnight at 45.68/69, the rupee went lower on good corporate interest for dollars. "In the morning on heavy month-end dollar covering by some firms and foreign banks. But, later at noon, due to some corporate dollar selling pressure, it recovered marginally and was traded at 45.88/90", a dealer with a forex brokerage said. Inflows of around $1 billion have reportedly been bought in by corporates . "From whatever has happened, it looks as if the move on the EEFC front has had no impact on the market", a dealer with a forex brokerage said. Cash/spot quoted at 4/4.5 paise (1.9/2 paise), cash/tom unchanged at 1/1.10 paise and tom/spot 3.25/3.50 paise (1/1.10 paise). The central bank fixed its reference rate for the dollar at 45.92 as against its previous fix at 45.76.
FORECAST: Rupee seen holding current levels on Friday.

Forward premiums
Forward premiums ended a shade softer on Friday. The six-month annualised forward cover finished unchanged at 5.10 per cent (5.10%). There was paying interest across all maturities. August dollars closed at 3/4 paise (8/9 paise) with September at 27/29 paise (29/31 paise). In the far forwards, April dollars closed at 144/146 paise (146/148 paise), May at 162//164 paise (163/165 paise) and June at 178/180 paise (180/182 paise). "There was paying interest across all maturities... what is worrying is that despite the Reserve Bank of India's (RBI) directive to to exporters to cut balance in the export earners foreign currency account by 50 per cent (EEFC), the spot-rupee continues to come under presure", a dealer with a forex brokerage said. The rupee went to an intra-day low of 45.94/96.
FORECAST: Premiums seen holding steady on Friday.

Gilts
Bond prices fell on Wednesday with the rupee continuing to show signs of weakness. The 12.50% 2004 was seen at Rs 104.55/60 (Rs 105.04/10) with the 11.15% 2002 at Rs 100.45/50 (Rs 100.94/101). The rupee fell by ten paise against the dollar from its overnight close at 45.67/68 against the dollar on Wednesday. Opening the day at 45.68/69, the the rupee went to an intra-day low of 45.80/81 on good corporate interest for dollars. The deadline for corporates to unwind 50 per cent of the balances held under the export earners' foreign currency (EEFC) accounts and converting the same into rupees expired today. "All eyes are on the Reserve Bank of India . The EEFC measures have not helped the rupee... now let us see what the Reserve Bank does", a dealer with a forex brokerage said.
FORECAST: Bond prices seen dipping on Friday.

-- (Compiled by Raghu Mohan)