The path for Indian rupee and government bonds this week hinges on the geopolitical fallout from the militant attack in Kashmir, traders said. India has said there were Pakistani elements in the April 22 attack,

A day after the U.N. appealed for restraint following Tuesday's deadly attack in Indian-administered Kashmir, India reported an exchange of fire across the de facto border in the disputed region.

The nuclear-armed rivals ramped up tit-for-tat diplomatic offensive following a deadly attack on tourists in Pahalgam.