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The rupee moved in a tight range on Monday, as positive sentiment due to gains in other Asian shares and currencies was offset by weaker local shares and demand for the greenback from importers.
The partially convertible rupee closed at 60.20/21 to a dollar compared to 60.1850/1950 on Friday. The rupee moved in a range of 60.05 to 60.2750 in the session.
Government bond yields rose for the fourth straight day with the benchmark 10-year bond yield hitting a one-month high as escalating tensions in Iraq pushed up crude oil prices and investors fretted over the impact on domestic inflation.
The yield on the 10-year bond ended at 8.77 per cent compared with the previous close of 8.72 per cent. The yield had ended at 8.77 per cent last time on May 21.
According to bond traders the yield also rose due to selling pressure ahead of auction of a new 10-year bond.
However, after market hours, the Reserve Bank of India (RBI) announced the Friday's auction schedule according to which the current 10-year bond will be re-issued. RBI also announced the auction of three other bonds totalling Rs 15,000 crore for this week.
The overnight call money rates ended higher at 8.25 per cent from Friday's level of 7.00 per cent. It moved in the wide range of 8.25 per cent and 7.65 per cent.
