Comfortable liquidity and a stable rupee kept call rates easy at 6.95-7.10 per cent today. Government securities, however, rose by 5-7 paise amid lacklustre trading.
Call rates today opened higher at 7.05-7.10 per cent but came down gradually during the day to close around 7 per cent. Dealers said most of the deals were struck in the 7-7.05 per cent range.
A dealer with a private bank, "The demand was thin and liquidity condition was also good. Further, stability in the forex market also rendered comfort to the call money."
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Trading was very thin in government securities today till afternoon when the prices went up by 5-7 paise at the long end of the market. Said a dealer with a private bank, "There is little bit of concern over the war situation. Moreover, as the credit policy is approaching players are staying sideline. That is why the market was very quiet today."
Call rates are likely to remain in the range of 6.80 per cent to 7.10 per cent tomorrow as liquidity condition is likely to remain unchanged. Dealers are not expecting any pressure on the overnight money from the forex market. Government securities are expected to remain stable with prices moving in a narrow range of 10-15 paise.
Said a dealer with a foreign bank, "There is no problem with liquidity and, hence, the call rates should be around the bank rate of 7 per cent. Gilt prices are already at the extreme level and is unlikely to move up more."