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Budget 2023
Budget 2023

Rupee may shoot past 81 to a dollar, bond yields to edge up as budget gets closer

Budget 2023: With a holiday-shortened week in India, the Chinese New Year, and no major data releases apart from U.S. economic growth and consumption prints towards the end of the week, market participants will keep a close eye on foreign portfolio inflows into Indian markets.

January 23, 2023 / 07:20 AM IST

The Indian rupee is expected to extend its gains this week, while government bond yields may move marginally higher due to worries about yet another year of elevated borrowing.

With a holiday-shortened week in India, the Chinese New Year, and no major data releases apart from U.S. economic growth and consumption prints towards the end of the week, market participants will keep a close eye on foreign portfolio inflows into Indian markets.

The rupee rose for a second straight week, gaining 0.25% over last week to end at 81.12 per dollar on Jan. 20, as the greenback slid on soft U.S. data.

The local unit is likely to add to its momentum and trade in a broad 80.50-81.50 range this week, analysts said.