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Journalism of Courage
Call Rate
Overnight call rates ruled steady at 8-8.05 per cent levels on Friday. Opening the day at 8-8.10 per cent from its last close at 7.90-7.95 per cent, call rates went to an intra-day high 8.15 per cent as a few banks rushed to cover their reserve requirements. In later day trades, call rates eased to 7.90 where it closed. quot;Call rates ruled marginally higher on demand for funds ahead of tomorrow8217;s holidayquot;, dealers said, adding: quot;Most of the deals were struck at around 8 per cent levelsquot;. The Reserve Bank of India did not received any application for its four-day repos today. The National Stock Exchange8217;s overnight Mibid and Mibor were pegged at 7.90 per cent and 8.06 per cent respectively.
FORECAST: Call rates seen holding 8 per cent levels on Monday.
Spot Dollar
The rupee rallied to close at 42.72/74 on Friday with the Lok Dal switching its allegiance in favour of the BJP8217;s coalition government. Opening the day at 42.76/78 from its last close at 42.81, the rupee went to anintra-day high of 42.71. quot;The shift in political equations saw the spot rupee gaining as banks, and corporates unwound their long-dollar positions,quot; dealers said. In later day trades, the rupee held steady at 42.71 levels where it closed for the day. Cash/spot closed at 1/1.25 paise 1.25/1.75 paise, cash/tom at 1.25/1.50 paise 0.25/0.50 paise with tom/spot at 0.25/0.50 paise 1/1.50 paise. The Reserve Bank fixed its reference rate for the dollar at 42.76 today as against its last fix at 42.83. The Euro opened the day stronger at 45.66 46.27 against the rupee, went to an intra-day high of 45.46 46.27 before finishing at 45.58 46.17.
FORECAST: Rupee seen at 42.70-45.74 on Monday.
Forward Premiums
Forward premiums across the board went softer on Friday. Near-term eased by 3-4 paise while far terms did so by nearly 20 paise. quot;Sentiment improved with the Lok Dal backing the BJP government at the centre. The appreciation in the spot-rupee, and receiving by both exporters and banks in theforwards helped premiums cool off,quot; a dealer at a UK-based bank said. In the near terms, April dollars closed at 4/6 paise 7/8 paise with May at 25/27 paise 30/32 paise.
The six-month annualised forward cover finished sharply 6.7 per cent compared to Thurday8217;s 7.15 per cent. In the far terms, December premiums closed at 208/212 paise 224/226 paise with January at 236/239 paise 254/256 paise. quot;Premiums may go still softer on Monday. It all depends on how the vote of confidence on Saturday turns out,quot; a dealer with a brokerage said.
FORECAST: Six-month annualised forward premium seen at 6.75 per cent levels on Monday.
Gilts
The government securities prices went up by 4-7 paise in early trades on Friday, but finished closer to last closing levels. quot;Trading interest was lacklustre and interest continued to be in the short to medium term papers,quot; a dealer with a US-based bank said. The 12.50 per cent 2004 was quoted at Rs 104.27 levels in the morning, but was seen at 101.25-104.26 Rs104.17-104.19 at the close of trades. The 11.40 per cent 2000 closed unchanged at Rs 101.97 as also the 11.55 per cent 2001 at 101.25. The 11.98 per cent 2004 ended higher at Rs 101.32-101.34 Rs 101.24-101.25. The 11.99 per cent 2009 traded at Rs 101.34 levels 100.30-100.32 levels. The 364-day T-bill maturing on the 7 July 1999 went at a yield-to-maturity YTM of 8.55 per cent while the one maturing on March 10, 2000 went at 9.85 per cent.
FORECAST: Bond prices may fall a bit on Monday.
