Re firms up to 43.47/$, bonds decline

The spot rupee firmed up to 43.47 per dollar as against the last close of 43.73 per dollar on hopes of more foreign inflows next year.

The close today is a near five-year closing high for the rupee.

Sentiment turned bearish in the government securities market today.
Announcement of auction to raise Rs 7,000 crore in the first week led to fall in prices.

While long-term gilts fell by Rs 1.25, medium and short term securities dropped by 80 paise to Re 1.

The 7.38% 2015 bond closed at an yield of 6.65% as against the close of 6.54% yesterday.