The Indian rupee opened marginally higher at 64.97 per dollar on Monday against 65.01 Friday.
Pramit Brahmbhatt of Veracity said, "Considering the indecisive movement of the equity market, the rupee is expected to trade sideways. We expect the USD-INR pair to trade in a range of 64.80-65.20."
The dollar fell against a basket of other major currencies as treasury yields slipped and investors remained skeptical of US Republicans' efforts to pass tax cuts.
Ajay Manglunia of Edelweiss said, "There was a surprise announcement for the bond markets post market closing with the RBI withdrawing the OMO sale scheduled for this week. This is in response to the narrowing of the liquidity surplus and it will drive optimism among participants about discontinuation of the fortnightly OMO sale program for now."
"Combined with the rating upgrade, the market response should be encouraging at opening today and the 10-year benchmark bond yield is likely to trade in a range of 6.95-7.02 percent today," he added.
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