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Mumbai: THE rupee closed firmer on Monday by around 5 paise at 48.9750/9850 against the dollar in the forex market, as compared to its previous close of 49.02/0250.

Forex dealers said, that the market witnessed abundant selling pressure with market participants across the board unwinding their long dollar positions.

"Fears of war have eased and other things remaining equal, the currency is expected to be stable at around these levels in the near term,'' said a forex dealer.

Meanwhile, forwards crashed as well, with the easing of war apprehensions, with the six-month premium ending at 5.70 per cent (5.90 per cent) and the premium for one-year ending at 5.48 per cent (5.74 per cent).

Securities prices rallied by around 25-30 paise from opening levels on the back of significant abatement of war threats due to diplomatic measures by India.

The 7.40 per cent 2012 paper, which had opened at around Rs 98 in the morning, ended at Rs 98.40 and the 7.55 per cent 2010 paper ended at around Rs 100.50, after opening at Rs 100.25.

Dealers said that prices, which had remained in a flat range throughout the day, immediately picked up on these reports.

Call rates inched to close at around 6.30 per cent, after opening at around 6-6.10 per cent.

Dealers said that there was some tightness in liquidity on account of a major lender unable to lend in call as one bid of Rs 8,000 crore had been put through.

In the one-day repo auction, the RBI received and accepted one bid of Rs 8,000 crore at 6 per cent.

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