Re steady at 43.66/$, gilts rally

Re steady at 43.66/$, gilts rally

Our Banking Bureau / Mumbai March 18, 2005

The spot rupee closed unchanged at 43.66 per dollar, recovering from the day's low of 43.70 per dollar.

Dollar buying on the back of high oil prices in early trade weakened the rupee. FII inflows and exporter selling at the 43.70-level propped the domestic currency.

The market has factored in a 25 basis point hike in US interest rates after the Fed meeting on Tuesday.

The government securities market was volatile today. Prices fell on news of higher-than-expected inflation, but later recovered on buying interest. Gilts finally closed 20-40 paise higher across-the-board when compared with yesterday