Call money ends lower at 3.25-3.50 pc

Mumbai, May 9 (UNI) Call money rates closed lower at 3.25-3.50 per cent today as compared to the previous close of 4.50-4.75 per cent.

During the day, it touched a high of 5 per cent and a low of 2 per cent.

Cash supply remained easy on the back of the government spendings, redemptions and coupon payment along with suspected Reserve Bank of India's intervention in the forex market. Cash surplus was also mirrored by the LAF window, dealers said.

At the LAF window, the central bank received 36 bids for Rs 33,510 crore at the one-day reverse repo auction, it accepted only Rs 3,000 crore, while only 1 bid for Rs 150 crore accepted at the one-day repo auction.

At the CBLO segment, 491 bids worth Rs 22,780 crore were transacted in the range of 0.10-4.00 per cent.

Money market rates are expected to be softer, as traders believed that ample cash is sufficient to suck the twin bond auctions and Market Stabilisation Scheme auction, dealers added.

UNI