Re slips to 43.80/$; gilts rally

With dollar gaining globally, the spot rupee slipped to a low of 43.82 per dollar after a steady opening at 43.74 per dollar. It finally closed at 43.80 per dollar.

Forward premiums continued to be high due to corporate demand. The six- month and 12-month forwards closed at 2.30% and 1.87%, respectively.

Sentiment was bullish in the government securities market today. With both inflation and oil prices coming down, the bond market witnessed a moderate rally.

While prices at the long end moved up by 55-60 paise, short and medium term papers went up by 20-25 paise.

The 7.38% 2,015 bond closed at an yield of 6.72%.

Call rates declined to 4.33% since it was the reporting day today. Reverse repo bids were lower at Rs 15,000 crore.