Call money opens lower at 6.50-6.70 pc

By Staff
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Google Oneindia News

Mumbai, Apr 10 (UNI) Interbank call money today resumed softer at 6.50-6.70 per cent, compared with previous close of 6.75-7 per cent on last Monday, dealers said.

Later, the call money prices movement was between 6.50 and 7.50 per cent in intra-day trades.

They stated,''Indian federal bond yields may ease on Tuesday after a drop in oil prices raised hopes that the Central Bank will keep rates steady at a policy review later this month.

The yield on the 10-year federal bond ended at 8.12 per cent on yesterday, down from the previous close of 8.20 pc.

Oil prices fell sharply on Monday after tensions eased between the West and Iran, the world's fourth-biggest oil exporter. US oil was trading near the USD 62 per barrel mark, below a recent high of USD 68 a barrel.

In the financial year that ended on March 31, the Central Bank increased a key lending rate five times and raised the cash reserve ratio (CRR), the proportion of deposits that banks must hold in reserve, three times.

Cash rates hit a 10-year high of 80 pc hit in late March. The latest CRR increase takes effect later this month, and the squeeze on available cash is expected to push call money rates higher again, dealers added.

UNI

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