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MARKET EYE-Indian cash rates end below repo rate; may spike on Thursday
August 13, 2014 / 12:17 PM / 3 years ago

MARKET EYE-Indian cash rates end below repo rate; may spike on Thursday

* 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) (gaurav.pai@thomsonreuters.com/; gaurav.pai.thomsonreuters.com@reuters.net)

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