Re drops to 43.59/$, gilts move up

The spot rupee opened at  43.56 per dollar, but closed lower at 43.59 per dollar due to acute shortage of  cash dollars.

Sentiment was bullish in the government securities market today.

The most traded security was the 10.25% 2,021 bond with a volume on the order matching system of Rs 1,250 crore.

The benchmark 10-year, 7.38% 2,015 bond closed at an yield of 7.02%.

Call rates ruled easy at 5%, and reverse repo bids totalled Rs 37,000 crore.

In the auction held today, the 8.07%, 2,017  bond was sold at a cut-off yield of 7.14%. The 7.50% 2,034 bond had a cut-off yield of 7.44%.