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The Reserve Bank of India, which has taken a series of measures to support the battered rupee, said on Monday it will continue to manage money market liquidity in order to balance financial stability, growth and inflation.
The RBI is likely to leave policy interest rates unchanged later on Tuesday.
The benchmark 10-year bond yield rose 6 basis points to 8.19 percent from its previous close as of 0907 India time (0337 GMT).