Rupee, bonds set to soar

Stimulus packages of the Reserve Bank of India (RBI) and the government may bode well for the spot rupee and government bonds on Monday. The rupee is likely to trade around 46 to a dollar by March 2009, according to experts.

In the last one week, the most traded 10-year paper has risen over Rs 2 on hopes of interest rate cuts. The most traded 10-year paper is seen in the 6.70-6.85 per cent band on Monday. It ended at Rs 110.15 or 6.75 per cent yield on Friday.