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 dividendThe 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.
