Indian rupee at 4-month high on reforms, market awaits RBI decision

MUMBAI: The Indian rupee rose to a four-month high in early trade on Monday with hopes of major foreign inflows after the federal government announced opening up of the aviation and multi-brand retail sectors to overseas direct investment.

At 9.04 a.m. local time, the rupee was at 53.72/73 to the dollar against its previous close of 54.30/31. It rose to a high of 53.66, its highest since May 15.

The market is awaiting the central bank's rate decision at 0530 GMT, with any rate cut likely to lead to a further rally in the rupee.

Indian government bond yields also fell on hopes of fiscal consolidation and ahead of the rate decision.

The 10-year yield was down 6 basis points at 8.12 percent.