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The rupee is expected to weaken further this week due to higher month-end dollar demand from importers.
The head of treasury of a large bank said, "This week, the rupee might trade in the range of 60 to 60.30 a dollar."
The rupee had ended stable on Friday, at 60.11 a dollar. The yield on the 10-year benchmark bond is expected to rise this week. The Reserve Bank of India auctioned a new 10-year bond on Friday to eventually replace the old one. According to bond market traders, buying in the new 10-year bond might continue, but in the secondary market. The yield on the 10-year benchmark bond ended at 8.67 per cent, compared with the previous close of 8.65 per cent. According to bond dealers, this week, the yield might trade in the range of 8.65 to 8.80 per cent.
The coupon rate on the new 10-year bond was 8.40 per cent in Friday's auction. The lower coupon indicates interest rates shall soon start falling.
