 "Rupee seen nearing 61/$, yields may rise")
The rupee is likely to near 61 a dollar this week as the Iraq crisis intensifies. Besides, month-end dollar demand from importers will also put pressure on the rupee.
On Friday, the rupee ended at 60.19, compared with the previous close of 60.09 a dollar.
Currency dealers believe that the Reserve Bank of India might not intervene to a significant extent to arrest the depreciation because they and the finance ministry are probably working on the Iran oil payment process.
On Friday, the rupee ended at 60.19, compared with the previous close of 60.09 a dollar.
Currency dealers believe that the Reserve Bank of India might not intervene to a significant extent to arrest the depreciation because they and the finance ministry are probably working on the Iran oil payment process.
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Government bond (g-sec) yields are expected to rise further and the yield on the 10-year bond might even touch 8.80 per cent on concerns that below-normal rainfall and rising global oil prices will fuel inflation. On Friday, the yield on the 10-year g-sec saw its biggest weekly loss since April. The yield on the 10-year benchmark bond ended at 8.73 per cent, compared with the previous close of 8.69 per cent.