Call money ends lower at 4.00-4.25 pc

Mumbai, Dec 20 (UNI) Aided by improved liquidity in the system, Inter-bank call money rates today ended lower to settle at 04.00-04.25 per cent as against the previous close of 07.70-07.80 per cent.

During the day, it touched a high of 08.50 per cent and a low of 03.00 per cent.

The overnight call rates were traversing in the range of 7.00 to 8.00 per cent.

According to market watchers, increased spending by the commercial banks eased the liquidity in the system which touched four per cent nearly after a week.

Despite the advance tax outflows during the week, money market players believe that liquidity is only marginally tight and will ease further from next week due to the month-end government spending.

Call money market will remain closed on Friday on account of Bakri Eid' holiday and will resume its operations on coming Monday.

UNI