Rupee settles marginally higher at Rs 83.58 per dollar
The rupee closed at 83.58 against the US dollar on Tuesday, versus the previous close of 83.59, LSEG data showed.
The local currency is expected to move in a range of 83.40 to 83.65 per US dollar until the Union Budget is announced next week, traders said.
Stronger chances of a September rate cut by the Federal Reserve have pressured US yields to come down. The US 10- year bond yield was at 4.17%, versus 4.20% yesterday. Lower US interest rates typically lead to a softer US dollar as global investors seek higher returns in emerging market assets.
Yield on the 10-year benchmark government security softened marginally because some traders bet on a cut in market borrowing, given the fiscal elbow room provided to the government by the larger-than-expected RBI dividend
The yields closed at 6.96% on Tuesday, versus the previous close of 6.98%, CCIL data showed.
Dealers expect the yields to trade between 6.95% and 6.98% till the Union Budget is announced.
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