India's rupee and government bond markets are expected to take cues from the Iran conflict and the Reserve Bank of India's monetary policy commentary. The Indian rupee is expected to rally nearly 2% week-on-week to 93.10, marking its best weekly performance since November 2022. Traders expect the rupee to find support from unwinding of residual arbitrage positions following the central bank's tightening foreign exchange rules. The central bank has taken measures to curb arbitrage and speculative trades that bet against the rupees. The selloff in Indian government bonds accelerated as oil prices remained elevated and the U.S.-Israel war with Iran entered its sixth week. The 10-year benchmark yield rose 19 basis points last week to end at 7.1329%.