The overnight cashrate stood at 7.25/7.30 per cent versus previous close of 7.00/7.05 per cent
and repo rate of 8.00 per cent. Weighted average call rate fell to 8.01 per
cent from 8.13 per cent on Tuesday.
Traders say some government spending helped ease cash conditions in the market.
Lack of demand for funds from banks due to lowercredit needs also pushed down cash rate. Banks borrowed only 81.18 billion rupees ($1.34 million) from RBI on Wednesday, the lowest since August 5.
Traders say some government spending helped ease cash conditions in the market.
Lack of demand for funds from banks due to lowercredit needs also pushed down cash rate. Banks borrowed only 81.18 billion rupees ($1.34 million) from RBI on Wednesday, the lowest since August 5.
Funds from banks'
126.44 billion rupees reverse repo auction with the RBI on Tuesday should also
have been returned on Wednesday, traders added.
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