Re, call rates fall

Moving in tandem with the call rates were the forward premium on dollar which fell across the board and six month premia closed at 13.50 per cent 8212; down by 50 basis points over Thursday8217;s close.

quot;Uncertainty has taken over the markets, and it is difficult to gauge where rates are headed for,quot; P Mukherjee, Deputy general managertreasury said. In an unexpected move, the Reserve Bank8217;s fixed rate repo drew in 987 crore at 9 per cent 8212; the highest in the past one month 8212; indicating that the market expects calls to remain at 9-11 per cent levels.

Call rates touched 140 per cent on January 17 after the Reserve Bank unleashed a package of measures to make domestic funds costlier after the rupee touched a all time low 40.45 and six month forwards had touched a high of 26 per cent annualised.

The Reserve Bank has since than embarked on a strategy to cool the forwards and the money market rates by swapping with banks that wanted to sell spot dollars to raise rupee resources.