* Overnight cash rate ends at 7.05/10 on Wednesday, falling below the repo rate of 8 percent. * Fall below repo is the first time since Aug. 7 * Rates fall after RBI injects 150.07 billion rupees ($2.45 billion) through a 7-day term repo earlier in the day. * RBI had also injected nearly 100 billion rupees in two separate one-day variable term repos on Monday and Tuesday.
* But dealers warn cash rates may spike on Thursday, as banks prepare to shore up their books before a long weekend. * Markets closed on Friday on account of the country's Independence Day. * Traders also grumble that RBI is sparking confusion by sudden announcements of term repos. (1 US dollar = 61.2500 Indian rupee) (email@example.com/; firstname.lastname@example.org)