Re slips to 43.85/$; gilts decline

Sentiment was bearish in the forex market today. The spot rupee opened at 43.80 per dollar, and closed on a weak note at 43.85 per dollar on buying by PSU banks as against the previous close of 43.81 per dollar.

Even as the inflation rate came down to 5.07%, government security prices fell due to profit-taking. Prices across maturities fell by 10-15 paise.

The 10-year 7.38%, 2,015 bond closed at an yield of 6.50%.

Call rates were firm at 4.80-4.85% due to liquidity mismatch after Rs an outflow of 26,000 crore to reverse repo.