The overnight inter-bank call money rate fell to 1.25 per cent at the close of trading in the money market today, down from yesterday's low of 4 per cent. |
The rate is being pushed close to its low of 1 per cent, touched earlier this month, by a flush of liquidity caused by redemption of bonds on Monday. |
|
"Towards the end of the day, there were players in the market to lend around Rs 1,500 crore, but there were no takers," said a call money dealer with a public sector bank. |
|
The all-time low of 0.25 per cent was touched in 1993 in the aftermath of the securities scam identified with Harshad Mehta. |
|
As the redemption of 11.90 per cent, 2007 series bonds freed Rs 20,660 crore yesterday, expectations arose that the Reserve Bank would intervene to mop up liquidity. |
|
But the central bank is believed to have done the contrary today by intervening in the foreign exchange market to curb the rise of the rupee, which closed at 40.86/87 to the dollar against 40.50 yesterday. |
|
|
|