Re drops to 43.50/$, gilts decline

The spot rupee opened at 43.15 per dollar, but closed sharply lower at 43.50 per dollar amidst  heavy central bank intervention today. The rupee had closed at 43.20 per dollar yesterday.

An above-than-expected inflation at 4.13% led to a bearish sentiment in the government securities market today. Prices across maturities fell by  15-20 paise.

The 10-year, 7.38% 2,015 bond closed at an yield of 7.16%.

Call rates were steady at 5.05%, and reverse repo bids totalled Rs  10,485 crore.