Re firms up 43.20/$, gilts rally

The spot rupee opened  at 43.52 per dollar, but firmed up to close at 43.20 per dollar after the 2% yuan revulation. The rupee had closed at 43.53 per dollar yesterday.

Gilt prices went up by 5-10 paise in response to yuan revaluation.

Prices of  long and medium term gilts rose by 50 paise and 15-20 paise, respectively.

The 10-year, 7.38% 2,015 bond closed at an yield of 7.14%.

Call rates ruled at 5.05-5.10%, and reverse repo bids dropped to Rs 12,000 crore.