* Domestic inflation, US economy data to be crucial, amid easy liquidity in the banking system
* Rupee will continue to strengthen following a fresh round of dollar weakness
* Profit selling expected in government securities later in the week
The liquidity level in the banking system, which was a crucial factor in the previous week, was not of much concern last week as foreign exchange inflows continued even after the interest rates on non-resident deposits were pegged to the LIBOR (London inter-bank offered rate).
A part of the rupee
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