 "Rupee might weaken, yields seen rising")
The rupee is expected to weaken this week, as dollar demand from importers is set to gain momentum.
"The trading range is seen at 59.80 to 60.50 this week," said a currency dealer with a state-run bank.
On Friday, the rupee had opened at 60.31. It ended at 59.94, while the previous close was 60.21 to a dollar.
The yield on the 10-year benchmark government bond ended stable at 8.77 per cent on Friday. The yield had risen to 8.84 per cent during intra-day trades, a level previously seen on May 20. The yield had ended at 8.86 per cent on the same day.
"The yield on the 10-year bond may breach 8.80 per cent this week. There is selling pressure on the existing 10-year benchmark bond because a new 10-year bond may be auctioned soon," said a bond trader with a state-run bank.
CPI-based inflation in May eased to 8.28 per cent from a three-month high of 8.59 per cent in April. The Reserve Bank of India will review monetary policy on August 5 and the broad expectation is that the repo rate will not be changed.
"The trading range is seen at 59.80 to 60.50 this week," said a currency dealer with a state-run bank.
On Friday, the rupee had opened at 60.31. It ended at 59.94, while the previous close was 60.21 to a dollar.
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While the rupee might weaken, government bond yields on the other hand, will depend on the Consumer Price Index (CPI)-based inflation numbers for June, to be released this week. According to bond dealers, yields are seen rising.
The yield on the 10-year benchmark government bond ended stable at 8.77 per cent on Friday. The yield had risen to 8.84 per cent during intra-day trades, a level previously seen on May 20. The yield had ended at 8.86 per cent on the same day.
"The yield on the 10-year bond may breach 8.80 per cent this week. There is selling pressure on the existing 10-year benchmark bond because a new 10-year bond may be auctioned soon," said a bond trader with a state-run bank.
CPI-based inflation in May eased to 8.28 per cent from a three-month high of 8.59 per cent in April. The Reserve Bank of India will review monetary policy on August 5 and the broad expectation is that the repo rate will not be changed.