Reuters Market Eye - The rupee continues to flirt with record lows, with the week expected to start with the reaction to U.S. non-farm payrolls data due later on August 2.
A strong jobs data may push the rupee past its record low of 61.21 seen on July 8, traders said, given the prospect that the U.S. Federal Reserve may start to taper its monetary stimulus earlier than expected.
A new low may see more steps from the central bank to prop the currency as investors await action from the government to bring in foreign inflows.
Bond yields will closely track rupee movements and U.S. Treasury yields.
The monsoon session of parliament is due to kick off on Monday, with important legislation such as a food security bill pending.
(Reporting by Subhadip Sircar)
