Re firms up to 43.44/$, gilts rally

The spot rupee opened at 43.49 per dollar, but moved up to 43.42 in intra-day deals. It finally closed at  43.44 per dollar as against the last close of 43.48 per dollar on the back of capital inflows.

Sentiment turned bullish in the government securities market today. Gilt prices rallied after the delay in the announcement of the state development loan  and participation of LIC.

While prices of long-term papers went up by 50 paise, medium term papers moved up by 20-25 paise.

The 10-year, 7.38% 2,015 bond closed at an yield of 7.20%  as against the last closing yield of 7.24%, and the 12-year, 8.50% 2,017 bond closed at 7.43% as against 7.47% yesterday.

Call rates moved up to 5.05-5.10%, and reverse repo bids  hovered around Rs 20,000 crore.