Re drops to 43.57/$; gilts rally

The rupee opened at 43.53 per dollar, and closed lower at 43.57 per dollar today.

The finance ministry statement that government has a surplus of Rs 22,000 crore, and an increase in reverse repo bids perked up the government securities market today. The prices of gilts across-the-board moved up by 20-30 paise.

The 10-year, 7.38% 2,015 bond closed at an yield of 6.88%.

Call rates came off from highs of 6% to 5.5%, and reverse repo bids totalled Rs 5,700 crore.