MUMBAI, March 20 Reuters This week, the Indian rupee and government bond yields are expected to take cues from the Federal Reserve39;s guidance at a pivotal monetary policy meeting amid the turmoil in the U.S. and European banking sectors.

On Sunday, UBS Group AG sealed a deal to buy Credit Suisse for 3.23 billion, a historic move which was followed by global central banks assuring markets of adequate dollar liquidity via standing swap lines.

The move could bring early relief to the market when they open on Monday. The rupee nondeliverable forwards market signalled a slightly weaker rupee on open.

The rupee finished 0.62 lower at 82.5525 per U.S. dollar last week, as risk sentiment was buffeted by fears about a looming global banking crisis and uncertainty about the Fed39;s next move.

Money markets largely point to a 25 basis point bps hike from the U.S. central bank on Wednesday, but there have been calls for a pause.

The rupee should hold an 82.0082.75 range this week until the Fed meeting, said a staterun bank trader.

Then, they added, the Fed39;s dot plot, commentary as well as the evolution of the banking turmoil would determine the currency39;s direction.

We remain glued to the situation as a turn for the worse can see a break of 83 and set up a test of 84 quickly for the rupee, said Jayaram Krishnamurthy, founding partner and COO at Almus Risk Consulting.

Meanwhile, after two weeks of relative calm, India39;s benchmark bond yield fell 8 bps last week to end…