Re moves up to 43.61/$, gilts decline

The spot rupee opened at 43.63, and closed a tad higher at 43.61  per dollar today.

Despite a moderate inflation figure, there was heavy selling in the government securities market today.

Part of the bearishness in the market is being attributed to apprehensions of a reverse repo rate hike in the July policy review.

While prices of long-term gilts fell by 15-20 paise, short-term paper declined by almost 10 paise.

The 10-year, 7.38% 2,015 bond closed at  an yield of 7.20% as against the close of 7.14% yesterday.

Call rates touched a high of 6% due to demand for reporting Friday. Reverse repo bids totalled Rs 5,800 crore as the period was for three days.