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The centre-left party's main opponent, the Hindu nationalist Bharatiya Janata Party (BJP), was the clear winner in three big states that went to the polls according to results on Sunday, with the count close in a fourth.
The partially convertible rupee was trading at 61.04/05 per dollar at 0913 India time (0343 GMT), after hitting as high as 60.84 to the dollar at the open, its strongest level since Aug. 12. It had closed Friday at 61.41/42.
The benchmark 10-year bond yields fell 4 basis points to 8.81 percent.