Mumbai, Dec 24 (UNI) Inadequate supply of cash in the call money market today forced the Inter-bank call money rates to close higher at 8.00-8.10 per cent compared to its previous close of 4.00-4.25 per cent.
During the day, it touched a high of 8.10 per cent and a low of 8.00 per cent.
According to market watchers, call rates which came down below five percent at its last close, shot up to eight per cent as the liquidity tightened in the system due to less trading by the commerical banks today.
The call rates will more or less hover around the level of 7.00-8.00 per cent for coming few days as the year end holidays are approaching when most of the financial institutions overseas will remain closed, dealers said.
The Reserve Bank of India, through reverse repo, accepted 16 bids worth Rs 14,690 crore at a fixed rate of 7.75 per cent.
The call money market will remain closed tomorrow on account of Christmas'.