Re slips to 43.80/$; gilts rally

Sentiment was volatile in the forex market today.

The spot rupee, which opened at 43.69 per dollar, slipped to 43.83 per dollar in intra-day deals. Buying by PSU banks saw the rupee recover to close at 43.80 per dollar - still lower than the previous close of 43.74 per dollar.

The government securities market rallied with buying coming in from nationalised banks. Long-term papers jumped up by almost Re 1 while prices of medium and short-term papers moved up by 40-60 paise and 20-25paise, respectively.

The 10-year, 7.38% 2,015 bond closed at an yield of 6.46% as against the last close of 6.53%.