Re slips to 43.59/$, gilts decline

The spot rupee opened at 43.56 per dollar, and firmed up to 43. 53 per dollar on sustained inflows. Buying  by PSU banks saw the rupee shed gains, and close on a slightly weak note at 43. 59 per dollar as against the last close of 43.56 per dollar.

Sentiment was bearish in the government securities market today. Rising oil prices and the news of government borrowing expected to be higher than the budgted figure led to selling pressure.

While prices of long-term papers fell by 30-35 paise, short and medium papers witnessed a decline of 15-20 paise.

The 10-year, 7.38% 2,015 closed at a higher yield of 6.61% as against the last close of 6.56%.

Call rates were steady at 5.50-5.60% amidst huge liquidity.  Reverse repo bids totalled Rs 38,000 crore.