Mumbai: Rates at
the call money market shot up to 15 per cent on 21 September.
Earlier in the day, call rates had opened at a range of 9 to 9.5
per cent. But, strong demand by banks that were short on their
positions in the day, being a Friday and a reporting day for the
banks, sent the call
rates soaring.
Also, there was pressure
on liquidity owing to advance tax outflows and intervention by the
Reserve Bank of India (RBI) in the forex market. Such high call
rates have been reached after a long time.
During the day, the RBI
injected Rs1,410 crore in 16 bids at 8.5 per cent through its
reverse repo auction and that cooled the market a bit.
The rupee remained within
range. The demand was strong but support from state-run banks and
few foreign banks kept the rupee under control. The rupee closed
at Rs 48.01.
Government Securities (G
Secs) remained weak due to the high call rate. G Sec prices
recovered later in the day following RBIs announcement that it
would again purchase securities through its purchase window on 24
September.
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