The overnight call money rates yesterday soared to 8.70 per cent levels against Wednesday's close of 8.10 per cent, while prices of securities fell for the second consecutive day by around 50 paise in the short-end, and 100 paise for medium-term and above.
The call rates were mainly mirroring the sentiments in the foreign exchange, which saw rupee depreciating to 44.75 against the dollar during the day. Call opened higher, with borrowers quoting 8.25-8.30 per cent against lenders' 8.50 per cent. It went on to touch 8.70 per cent as the rupee fell to an all-time low.
In the securities market, there were net sellers, which led to a steep fall across the board.
The 11.83 per cent 2015 was traded at Rs 105.20 against Rs 107.50 being traded a few days ago.
The call money rates and rupee saw some recovery after the Reserve Bank of India (RBI) announced measures to stabilise the rupee against the greenback. Dealers however said that the recovery was marginal and had no real impact on the market. "Prices of government securities recovered in one shot as RBI announced the new measures, but fell again on profit booking," said a dealer. "However, the volume subsequent to the recovery was very thin and thus it can hardly be termed as recovery," he added.
For instance, the 11.68 per cent security 2006 opened at Rs 106.90, fell to Rs 106.45 and recovered to Rs 107.10 and again fell to Rs 106.55 during the close of the day.
