Call, TREPs rates rise post VRRR auction; rupee logs 2-year best gain

Overnight rates climbed after RBI's VRRR auction while the rupee gained 1.3 per cent during the week, marking its strongest performance since January 2023

Overnight money market rates rose after the Reserve Bank of India’s (RBI’s) seven-day Variable Rate Reverse Repo (VRRR) auction on Friday.

 

The weighted average call rate (WACR), which is the operating target of the monetary policy, inched closer to the policy repo rate of 5.5 per cent as it settled at 5.38 per cent, against the previous close of 5.27 per cent. The weighted average overnight TREPS (Treasury Bills Repurchase) rate settled at 5.42 per cent, against 5.24 per cent on Thursday.

 

The VRRR auction was conducted to align the overnight rates closer to the repo rate. These rates were