 "Rupee might weaken, yields seen rising")
The rupee might weaken further this week, as data on Friday showed the trade deficit widened to a five-month high in March. Besides, state-run banks might continue to mop foreign flows, attracted by domestic markets.
Government bond yields are seen rising this week, as experts believe the consumer price index (CPI) inflation for March might inch up from February's level. The data for March will be released this week.
CPI inflation for February eased more than expected to a 25-month low of 8.1 per cent, helped by moderating food prices, government data showed on Wednesday.
On Friday, the rupee ended weak, to post its second consecutive weekly fall after data showed the trade deficit widened to a five-month high in March. The rupee ended at 60.18, compared with the previous close of 60.07 a dollar.
The yield on the 10-year benchmark government bond 8.83 per cent 2023 ended at 8.94 per cent compared with the previous close of nine per cent.
"The yield might once again rise this week due to expected rise in inflation. It could trade in the range of 9 per cent to 9.10 per cent," said a government bond dealer with a state-run bank.
The government bond auction for a notified amount of Rs 16,000 crore sailed smoothly on Friday.
Government bond yields are seen rising this week, as experts believe the consumer price index (CPI) inflation for March might inch up from February's level. The data for March will be released this week.
CPI inflation for February eased more than expected to a 25-month low of 8.1 per cent, helped by moderating food prices, government data showed on Wednesday.
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"The rupee may trade in the range of 60.25 to 60.50 a dollar this week. The bias is toward weakening," said the treasury head of a public sector bank.
On Friday, the rupee ended weak, to post its second consecutive weekly fall after data showed the trade deficit widened to a five-month high in March. The rupee ended at 60.18, compared with the previous close of 60.07 a dollar.
The yield on the 10-year benchmark government bond 8.83 per cent 2023 ended at 8.94 per cent compared with the previous close of nine per cent.
"The yield might once again rise this week due to expected rise in inflation. It could trade in the range of 9 per cent to 9.10 per cent," said a government bond dealer with a state-run bank.
The government bond auction for a notified amount of Rs 16,000 crore sailed smoothly on Friday.