Call money closes higher at 7.80/8.00 pc

Mumbai, Jan 25 (UNI) Interbank call money rates closed firm at 7.80-8.00 per cent as against their previous close of 7.75-7.85 per cent, dealers said.

Contrary to expectations, the last day of the shortened week did not see any upswing in the borrowing requirements of the banks.

Also, the gradually improving systemic liquidity meant that the same was able to comfortably meet the existing demand from the banks. As a result, inter bank rates continued to trade soft.

The LAF window saw the RBI accepting 4 bids worth Rs.80 crore at the 1-day reverse-repo auction while at its 1-day repo auction, 27 bids amounting to Rs.11,525 crore were received.

At the CBLO segment, 301 bids worth Rs.17,210 crore were traded in the range of 7.00-7.50 per cent.

The fresh week is likely to see both, the demand and supply levels, remaining steady. Consequently, call money rates are expected to remain around the present levels. However, any tightening of rates done at the upcoming RBI policy meet would test the inter bank rates.

Trading in call money market will remained officially closed tomorrow for Republic day. The business would be resumed on Monday as usual, traders added.

UNI