Call rates shot up to 20 per cent at the overnight call money market here today due to heavy demand for funds towards the later part of the day amidst reduced liquidity in the system following the absence of a major lending participant. Call rates closed around 15-18 per cent, sharply higher from Tuesday's closing levels of 10.90-11.00 per cent after opening on a firm note at 11.25-11.50 per cent. State Bank of India (SBI), a major player withdrew from the market with the result liquidity tightened, they added.

The military coup in Pakistan affected the sentiment at the interbank foreign exchange (forex) market today. The Indian rupee, after loosing sharply against US dollar in the morningsession, recovered smartly towards the end of trading following positive statements from Prime Minister AB Vajpayee.

The Indian unit opened at 43.42/43 per dollar and suddenly came under pressure following corporate dollar buying spree mainly due to fear of any possible impact of the developments in Pakistan on the country. However, the State Bank of India cooled down the market sentiment by maintaining the dollar supply at a lower level, dealers said.

The currency fell to a day's low of 43.51/54 losing by nearly ten paise from the previous close but finally recovered to 43.43/44 per dollar towards the end of trading as against the previous close of Rs 43.43/44.