Re slips to 43.81/$; gilts rally

Sentiment was bearish in the forex market today. The spot rupee opened at 43.75 per dollar, and moved up to an intra-day high of 43.7150 on strong inflows.

Sustained buying by PSU banks saw the rupee drop from highs, and close at 43.81 per dollar as against the last close of 43.77 per dollar.

Prices of government securities witnessed a small rally today. Short-term papers went up by 30-40 paise backd by heavy buying of 3-4 year papers by foreign banks. Prices of medium and long-term papers went up by 7-20 paise.

The 10-year, 7.38% 2,015 bond closed at an yield of 6.51%.