Reuters Market Eye - India's foreign exchange and debt markets are awaiting the wholesale price-based inflation data due for release on Monday for cementing views on the likely outcome of the RBI's monetary policy review on Wednesday.
Traders say bond market participants are more or less certain the central bank will hike rates by 25 basis points after the higher-than-expected jump in retail prices in November.
The rupee is expected to hold in a 61.50 to 62.50 per dollar range until the policy review.
The benchmark 10-year bond yield is seen holding in a 8.80 to 9.10 percent range next week, dealers say.
Post-policy, the U.S. Federal Reserve's policy decision will be closely monitored to see whether they choose to taper its monetary stimulus or for clues on how soon it would begin.
(Report by Swati Bhat)
