The Indian rupee and government bonds are expected to benefit from a U.S.-Iran ceasefire agreement that has eased concerns over energy supplies and pushed oil prices lower, Reuters reported on Monday.
The rupee is expected to strengthen beyond its Friday close of 95.11 per U.S. dollar, while bond yields could remain supported by softer crude prices and recent measures aimed at attracting foreign currency inflows, the report noted.
Market participants will also focus on the U.S. Federal Reserve's policy decision this week, Reuters said. While interest rates are widely expected to remain unchanged, investors will watch for signals on the future policy path, according to the report.
Foreign investors have increased purchases of Indian bonds in recent sessions, Reuters noted. Net buying worth 155.5 billion rupees since June 5 has exceeded cumulative purchases worth 155 billion rupees for the year through June 4, it added.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)