 "Rupee may weaken, yields seen rising this week")
The rupee is expected to weaken this week and government bond yields could rise further, as the market awaits the outcome of the two-day meeting of the federal open market committee of the US Federal Reserve. The Fed could start the rate raise cycle sooner than expected.
“The rupee could trade in the range of 63.8 to 64.5 a dollar. The bias is towards weakening, as there will be dollar demand from importers and companies ahead of the meeting outcome,” said the head of treasury of a public sector bank (PSB).
The rupee ended at 64.06 on Friday, against the previous close of 63.98. Bond yields have been rising in the recent past due to a rise in global bond yields and the trend might continue this week, too. “The yield on the 10-year benchmark bond could touch 8.15 per cent this week,” said a bond trader with a PSB.
The yield on the 10-year benchmark bond ended at 8.11 per cent on Friday compared with previous close of 8.09 per cent. The yield on the new 10-year bond had ended at 7.89 per cent compared with previous close of 7.88 per cent.
“The rupee could trade in the range of 63.8 to 64.5 a dollar. The bias is towards weakening, as there will be dollar demand from importers and companies ahead of the meeting outcome,” said the head of treasury of a public sector bank (PSB).
The rupee ended at 64.06 on Friday, against the previous close of 63.98. Bond yields have been rising in the recent past due to a rise in global bond yields and the trend might continue this week, too. “The yield on the 10-year benchmark bond could touch 8.15 per cent this week,” said a bond trader with a PSB.
The yield on the 10-year benchmark bond ended at 8.11 per cent on Friday compared with previous close of 8.09 per cent. The yield on the new 10-year bond had ended at 7.89 per cent compared with previous close of 7.88 per cent.