Call money closes high at 8.00-8.10 pc

Mumbai, Jan 8 (UNI) Interbank call rates hardened having ended the day at 8.00-8.10 per cent as against their previous close of 6.25-6.75 per cent, dealers said.

With the second phase of the CRR hike having come into force, the fresh fortnight saw the call money market come under considerable pressure. As banks withdrew in excess, the rates kept creeping up.

However, the sentiment was also helped by the news of the reduced size of the impending GOI bond auction. As a result, there were hopes that the current tightness in the systemic liquidity was only temporary.

At the LAF window, the RBI received a mere 6 bids worth Rs 170 crore at the 1-day reverse repo auction while at the 1-day repo auction 39 bids amounting to Rs 16,485 crore were accepted.

The CBLO segment saw 355 bids worth Rs.19,174 crore being transacted in the range of 7.14-7.70 per cent.

Borrowing demand from the banks is expected to sustain pressure on the system. Consequenly, call money rates are likely to rise further, dealers added.

UNI