)
The rupee is seen weakening this week due to dollar demand from importers, while government bond yields are expected to trade in a range. Experts believe the weakness in the rupee will continue but not as seen earlier this month, after China announced a devaluation of its currency.
“For the rupee, the bias will be towards weakness and the broad range is seen between 65.75 and 66.50 a dollar this week,” said Sandeep Gonsalves, dealer, Mecklai & Mecklai.
On Friday, the rupee had ended at 66.16, compared to the previous close of 66.16. In the week, it had weakened by 33 paise, due to persistent dollar demand from importers.
Also Read
Meanwhile, 10-year benchmark government bond yields are seen trading in a range. “The recent global volatility and rupee volatility seems to have become stable. Yields should be in a range because the underlying sentiment is reasonably okay and investors’ appetite is strong. The broad range will be 7.75-7.85 per cent for the benchmark this week,” said Suyash Choudhary, head, fixed income, IDFC Mutual Fund.
This yield ended at 7.78 per cent on Friday, compared with the previous close of 7.77 per cent. Friday’s government bond auction worth Rs 14,000 crore had sailed smoothly.
