Re slips to 43.54/$, bonds rally

The spot rupee slipped to 43.54 per dollar as against the previous close of 43.48 per dollar after dollar firmed up in overseas markets.

The government securities market was bullish with an overhang of excess liquidity.

Prices in the long-term papers went up by 75 paise whereas medium and short-term papers witnessed rally of 50 paise.

The 7.38% 2,015 bond closed at an yield of 6.47% as against a close of 6.53% on Monday.

Call rates ruled in the range of 4.75-.78% with reverse repo bids of Rs 40,000 crore.

The central bank auctioned the 9.39% 2,011 paper at a cut-off yield of 6.52%.