Re firms up to 43.74/$, gilts rally

The spot rupee opened at 43.82 per dollar, but moved up on sustained inflows and selling ahead of the long weekend to close at 43. 74 per dollar.

Sentiment was bullish in the government securities market today. The statement of finance minister that the interest rate scenario will not change for the next six months saw prices rally sharply.

While prices of long-term papers moved up by 30-40 paise, short and medium-term papers rallied by 25-30 paise.

The 10-year, 7.38% 2,015 bond closed at a lower yield of 6.65% as against 6.72% on Wednesday.

Call rates shot up to 5%, but eased later in the day. Reverse repo bids totalled Rs 12,000 crore.