March 01, 2008	Saturday	Safar 22, 1429

KARACHI, Feb 29: Money market was short of funds on Friday and banks were forced to go to the central bank’s discount window, dealers said.

Overnight call rates ended at 10.40 per cent, up from 9.50 per cent on Thursday, and just below the 10.50 per cent discount rate at which banks borrowed rs11.4 billion from the State Bank of Pakistan three-day repo-facility.

“The next inflow is in about two weeks so rates are likely to be around 9.50 to 10 percent,” said a brokerage dealer.

Dealers said the market was tight on Friday as banks are required to keep a minimum of 8.0 percent of their cash reserves, for all deposits below one year, with the central bank over the weekend.

Dealers said there were inflows scheduled for March 13 from maturing government securities.In the currency market, the rupee was slightly weaker at 62.62/66 compared with Thursday’s close of 62.50/55.---Reuters