NEW YORK: The US interest rate which banks charge each other to borrow excess reserves averaged 0.36 percent on Monday, which was back within the Federal Reserve's target range, according to Fed data released on Tuesday.

The fed funds rate, which the Fed targets to achieve its rate objective, fell to 0.20 percent on Dec. 31, which was below the Fed's 0.25-0.50 percent intended range.

On Monday, this interbank borrowing cost traded in a range of 0.28 percent to 0.63 percent, compared with 0.08 percent to 0.63 percent last Thursday.

In early Tuesday trading, the fed funds rate was quoted at 0.35-0.37 percent, compared with 0.35 percent late on Monday, according to ICAP data.

Copyright Reuters, 2016