U.S. effective fed funds rate remains at 0.37 percent

NEW YORK (Reuters) - The U.S. interest rate that the Federal Reserve targets to conduct its monetary policy held at 0.37 percent for a second day on Thursday, according to Fed data released on Friday.

The average, or effective, fed funds rate traded in a range of 0.34 percent to 0.50 percent with $75 billion in this type of interbank loan changing hands.

On Wednesday, the fed funds rate traded in a range of 0.33 percent to 0.45 percent with $75 billion changing hands.

Meanwhile, the Fed's overnight bank funding rate held at 0.37 percent for a third day on Thursday.

This rate, which debuted on Tuesday, is calculated using fed funds and certain Eurodollar transactions, intended as a broader measure of unsecured borrowing in U.S. money markets.

These transactions changed hands in a range of 0.15 percent to 0.42 percent on Thursday, compared with 0.29 percent to 0.42 percent on Wednesday.

The New York Fed said Thursday's rate was based on $326 billion worth of loans, compared with $333 billion on Wednesday.

(Reporting by Richard Leong; Editing by Chizu Nomiyama)

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