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The rupee is seen appreciating further this week due to flows from foreign institutional investors in domestic markets.
There are expect-ations in the market that global rating agency Standard & Poor might upgrade India's credit rating.
"The trading range for the rupee is seen at 60.10 to 60.40 (to the dollar) this week," said N S Venkatesh, executive director and head of treasury at IDBI Bank.
The rupee on Friday gained 0.3 per cent to close at 60.47, compared with Thursday's close of 60.68. During intra-day trade, the currency had even appreciated to 60.38 to a dollar.
Standards & Poor currently rates India as 'BBB', the lowest in the investment grade, with a negative outlook.
An upgrade in rating will help India to attract more foreign flows in the domestic markets.
Government bond yields are seen falling this week. The speculation of a rating upgrade is helping to attract foreign institutional investors flows in bonds.
"This week, the yield mighty trade in the range of 8.45 to 8.50 per cent," said the bond trader with a public sector bank. The yield on the 10-year benchmark bond ended at 8.52 per cent on Friday, comp-ared with the previous close of 8.51 per cent.
