The spot rupee dropped to 43.54 per dollar as against the Monday close of 43.42 per dollar on importer demand and buying by PSU banks.The prices of government securities rose across-the-board in the wake of sufficient liquidity and no negative triggers.While prices of long-term papers went up by 40-45 paise, short and medium term papers moved up by 25-30 paise. The 10-year, 7.38% 2,015 bond closed at an yield of 6.97% as against a close of 7.02% on Monday. Call rates fell as low as 1-1.5%, and reverse repo bids zoomed to Rs 44,000 crore.
