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The rupee is expected to appreciate while bond yields are expected to rise this week.
According to currency dealers, the rupee might appreciate because the dollar slipped against the euro after data showed US jobs growth slowed in August.
The dollar fell on Friday after data showed United States non-farm payrolls grew by only 142,000 last month, which was below forecast. The rupee is expected to open strong against the dollar on Monday.
“The rupee may trade in a range of 60-60.50 a dollar this week. The bias is towards strengthening,” said a currency dealer with a state-run bank.
On Friday, the rupee ended at 60.41, compared with the previous close of 60.37 a dollar.
Government bond yields are seen rising from current levels though the rise in yields is not seen significantly.
According to traders, this might be because the foreign institutional investment limit in government bonds has been filled up to 98.25 per cent according to data from National Securities Depository Limited.
“The yield may trade in the range of 8.50-8.60 per cent. There is an expectation that this foreign institutional investment limit may be hiked. But if that does not happen then yields may rise,” said a bond trader.
The yield on the 10-year bond ended stable at 8.52 per cent on Friday.
