Liquidity Tightning.

The interbank call rates touched an intra-day high of 70 per cent on the last trading day of the financial year, signalling extreme liquidity tightness in the market, before closing at 30 per cent.

The market has been reeling under tight liquidity on the back of advance tax outflows of around Rs 40,000 crore and the RBI’s liquidity absorption measures.

Anticipating a depreciation of the spot rupee next week, most banks entered into sell-buy swaps by selling dollars to be bought next week anticipating a dollar appreciation. On the back of such swaps, the spot rupee opened at 43.67/68 but closed at a high of 43.47/48 to a dollar.