The rupee closed at 83.58 against the US dollar on Tuesday, against 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.
Strong prospects for a September rate cut by the Federal Reserve have pushed US yields lower. The US 10-year bond yield was 4.17%, up from 4.20% yesterday. Lower US interest rates typically lead to a weaker US dollar as global investors seek higher returns in emerging market assets.
Yields on the benchmark 10-year government security softened marginally as some traders cut market borrowing in view of the fiscal elbow room provided to the government by the RBI’s higher-than-expected dividend.
The yield closed at 6.96% on Tuesday, against the previous close of 6.98%, CCIL data showed.
Dealers expect yields to trade between 6.95% and 6.98% until the Union Budget is announced.
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