Money markets near paralysed, no relief seen

Money markets struggled in a state of near paralysis on Wednesday as the start of a new financial quarter failed to relieve the strains th
at have made it difficult for many banks to secure funds, especially much-needed dollars.

Traders in Asia quoted overnight dollar borrowings as high as 6 pct, three times the Federal Reserve's target for overnight rates. Activity was limited due to holidays in Singapore and other financial centres.

"There's still fundamental concerns about counterparty risk in the interbank market. Until that eases up, nothing is going to change