 "Rupee might weaken further on dollar demand")
The rupee is seen weakening further this week, as month-end dollar demand from importers starts. Government bond yields, on the other hand, are expected to trade in a range with a rising bias for yields.
In the recent past, the rupee has been weakening due to foreign institutional investors (FIIs) selling their domestic portfolios and dollar demand from oil importers.
“The depreciation bias for the rupee may continue. Month-end dollar demand from importers will also dampen sentiments. The broad range for the rupee is seen at 62.50 to 63.50 this week,” said Naveen Mathur, associate director (commodities and currencies) at Angel Broking.
A fixed income head of a fund house said, “The yield on the 10-year benchmark bond may trade in the range of 7.9 to 8 per cent this week. There is no economic data to be released this week, due to which there is nothing to look forward to for major movement in bond yields.”
On Friday, the 10-year bond yield ended at 7.96 per cent, compared with the previous close of 7.93 per cent.
In the recent past, the rupee has been weakening due to foreign institutional investors (FIIs) selling their domestic portfolios and dollar demand from oil importers.
“The depreciation bias for the rupee may continue. Month-end dollar demand from importers will also dampen sentiments. The broad range for the rupee is seen at 62.50 to 63.50 this week,” said Naveen Mathur, associate director (commodities and currencies) at Angel Broking.
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On Friday, the rupee ended weak at 63.30, compared with the previous close of 63.11 to a dollar.
A fixed income head of a fund house said, “The yield on the 10-year benchmark bond may trade in the range of 7.9 to 8 per cent this week. There is no economic data to be released this week, due to which there is nothing to look forward to for major movement in bond yields.”
On Friday, the 10-year bond yield ended at 7.96 per cent, compared with the previous close of 7.93 per cent.