Calls Down To 8.75%

Call rates fell to single digits yesterday and forward premia on the dollar slid even as the spot dollar started appreciating again.

The interest rate in the inter-bank overnight money market ruled at 8.75-9.25%. With call rates ruling at less than 10% on Saturday as well as yesterday, forward premia declined across the board. The one-month closed at 14.31%, the three-month at 14.46% and the six-month at 11.79%.

The rupee closed at 38.88-93, down from its previous close of 38.73-77 After opening at 38.70-75, the rupee dipped on covering by importers and purchases by SBI. There was a healthy response at the 9 per cent fixed rate repos after over two weeks. The RBI received four bids for Rs 987 crore.

The STCI weighted average call money rate was 9.20% on a turnover of Rs 1,300 crore. In the T-bills segment, the 364 day T-bill maturing on April 10 was dealt at 11-11.75%. The prices of securities improved with the 13.50% 1998 dealt at Rs 100.45, the 12.50% 2004 at Rs 100.50-Rs 101.20, the 12.59% 2004 at Rs 101.20-Rs 101.85, 13.62% 1998 at Rs 101.20 and the 11% 2002 at Rs 97.75.