Re up a notch at 43.55/$, gilts rally

The spot rupee opened at  43.51 per dollar, and touched an intra-day high of 43.49 per dollar. It, however, drifted lower to close at 43.55 per dollar.

The rupee had closed at 43.56 per dollar yesterday.

Sentiment was bullish in the government securities market today, and prices of gilts moved up tracking US yields and the marginal decline in oil prices.

Prices of long and medium term papers went up by  75-80 paise, but short term papers declined by 30 paise.

The 10-year, 7.38% 2,015 bond closed at a lower yield of 6.82% as against 6.91% yesterday.

Call rates hovered around 5%, and reverse repo bids totalled Rs 15,000 crore.