Call money closes low at 6.50-6.70 pc

Mumbai, Jan 4 (UNI) Interbank call rates continued to trade soft having ended the day at 6.50-6.70 per cent as against their previous close of 6.25-6.75 per cent, dealers said.

On the back of comfortable liquidity, the modest demand levels from banks helped the rates to remain on the lower side.

There were some concerns regarding a cash squeeze with the second phase of the CRR hike due to get implemented tomorrow. However, the present comfortable systemic liquidity ensured that the rates remained soft.

The LAF window saw the RBI receiving 26 bids worth Rs.10,915 crore at the 1-day reverse repo auction. The 1-day repo auction saw 4 bids worth Rs.670 crore being accepted.

The CBLO segment witnessed 349 bids for Rs.15,920 crore being traded in the range of 5.87-6.17 per cent.

Ahead of the fresh fortnight and the subsequent demand from banks, inter bank rates are likely to tighten marginally, traders added.

UNI