Commercial paper market contracts in week: Fed

NEW YORK (Reuters) - The commercial paper market shrank in the latest week, suggesting businesses either cut back on short-term borrowing or filled their short-term borrowing needs elsewhere, according to Federal Reserve data released on Thursday.

Non-seasonally adjusted commercial paper outstanding fell $6.5 billion in the week ended April 11.

Seasonally adjusted commercial paper outstanding fell $3.1 billion in the week ended April 11.

Non-seasonally adjusted foreign bank commercial paper outstanding fell $1.3 billion in the week ended April 11, according to the data released by the Fed.

Companies use the short-term commercial paper market to raise cash to finance payrolls and inventories.

(Reporting By Ellen Freilich; Editing by Chizu Nomiyama)