Re firms up to 43.50/$, gilts decline

Sentiment was bullish in the forex market today.

The spot rupee opened at 43. 5250 per dollar and moved up to an intra-day high of 43.48 per dollar backed by strong inflows. It finally closed at 43.50 per dollar.

Reduced liquidity in the system led to bearish sentiment in the government securities market today. 

Prices of gilts in the long and medium term fell by 40-50 paise whereas short term papers witnessed a decline of 15 paise. The 10-year, 7.38% 2015 bond closed at 6.92%.

Call rates moved above 6%, and reverse repo bids were at around Rs 4,000 crore.